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Romney’s Bain & Goldman Sachs attorneys Traub & MNAT Conspired and Colluded to commit IPO/ Bankruptcy Fraud eToys

March 18, 2011 2 comments

NEWS BREAK

PoliticusUSA.com release November 2, 2012

Mitt Romney Benefited from Fraud, Corruption and Racketeering

http://www.politicususa.com/public-records-reveal-romney-profited-corruption-fraud-racketeering-bain.html

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NOTE: There’s NO statute of limitations on Bankruptcy Fraud

until 5 years – AFTER the case closes.

Additionally, if the fraud is by a court approved Officer of the Court

- there’s NO Statute of Limitations PERIOD (In re Hazel Atlas Glass – US Sup Ct 1944)

More Proof Emerges – Romney Campaign Lying About Leaving Bain in 1999

http://www.dailykos.com/story/2012/05/20/1093276/-More-Proof-Romney-s-Camp-is-Lying-On-Mitt-the-pitts-Leaving-Bain-in-1999

and

http://www.dailykos.com/story/2012/08/04/1102170/-A-Plethora-of-20-Proofs-Mitt-Romney-Was-CEO-of-Bain-Capital-Post-Feb-1999

Mitt Romney Direct Connections to Fraudsters

NOTE  ————to ALL FEDERAL AGENTS – JUDGES – SEC and people honorable.

.

I, Steven Haas (more commonly known as Laser Haas)

AVER – UNDER PENALTY OF PERJURY

This, the 11th day of April  2012

REAFFIRMED this, the 15th day of May 2012

do state and affirm the items here to be True and Correct that

.

Mitt Romney is benefitting from federal fraud Continuously.

.

Romney was “still” CEO of Bain until August 2001

Bain with their cohorts Goldman Sachs, Paul Traub,

Barry Gold and www.MNAT.com law firm

CONSPIRED & COLLUDED to DeFraud a Public company (eToys)

 and commit State, SEC & Federal Frauds thru massive Bankruptcy Frauds

in the hundreds of millions of dollars.

And the PROOF Is Overwhelming & Profuse via Public Docket Records

Through Collusion, Conspiracy and Perjury Bain Capital, with the assistance of its counsel Greg Werkheiser of MNAT and Paul Traub – stole the federal bankruptcy estate assets of eToys in 2001. Due to Smoking Gun evidence discovered by this Affidavint party - Both MNAT and Paul Traubundisclosed” relationships with Goldman Sachs and Barry Gold were reported.

Since that time – MNAT has confessed to its failure to disclose the Goldman Sachs relationship and Paul Traub has confessed his secret partnership with post bankruptcy petition President & CEO of eToys (Barry Gold). In 2001 and 2002, deals were made with Bain Capital and Kay Bee Toys to give away the assets to them – basically for free.

However, MNAT and Paul Traub, despite an Order of October 4, 2005, by Chief Bankruptcy Justice Mary F Walrath – to disclose all other relationships; the parties have failed to mention their connections to Bain Capital and Kay Bee Toys. This Collusion and Conspiracy is accomplished by Perjury.

Compounding these issues are Department of Justice items of corruption – where the United States Attorney in Delaware, from 2001 to 2008 – refused for those 7 years – to investigate or prosecute the parties. Even after they had admitted to “Intentional” fraud on the court. This is because the United States Attorney in Delaware was Colm Connolly. USA Connolly also had his own conflict of interest – he failed to inform us (while refusing to prosecute the parties) – that Colm Connolly was a partner at MNAT in 2001. The very year the crime spree began.

Colm Connolly partner at MNAT law firm

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Colm Connolly’s Resume at the Department of Justice Archived Website http://www.justice.gov/archive/olp/colmconnollyresume.htm

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Bain now owns Toys R Us that illegally owns the stolen property of eToys

Toys R Us is in possession of the stolen property of eToys estate

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Morris Nichols Arsht & Tunnel (“MNAT”) did confess to failure to disclose the fact that it was Goldman Sachs Delaware counsel – when the court approved MNAT as eToys Debtor’s counsel. In accordance with the LAW and the US Supreme Court adoption of the case of In re Middleton Arms 19 F.3d 138 USLW 2638, 25 Bankr. Ct.Dec. 618, Bankr. L. Rep. P 75,763 (as adopted by the 3rd Circuit case of US Trustee v Price Waterhouse ( here ). Failure to disclose ANY conflict of interest – must result in disqualification.As the Third Circuit denoted in US Trustee v Price Waterhouse;

“As the Supreme Court and our court have repeated many times in recent years, when statutory language is clear and unambiguous it ordinarily must be followed. See, e.g., Rake v. Wade, — U.S. —-, —-, 113 S.Ct. 2187, 2191, 124 L.Ed.2d 424 (1993); Patterson v. Shumate, — U.S. —-, —- – —-, 112 S.Ct. 2242, 2246-47, 119 L.Ed.2d 519 (1992); Prisco v. Talty, 993 F.2d 21, 24 (3d Cir.1993); Virgin Islands v. Knight, 989 F.2d 619, 633 (3d Cir.), cert. denied, — U.S. —-, 114 S.Ct. 556, 126 L.Ed.2d 457 (1993). Here, the relevant statutory provisions are clear and unambiguous”

But the Delaware Department of Justice and Federal Court’s are damnation bent to break all Laws and Federal Rules of Civil Procedure, destroying the Public’s faith in the integrity of the Judicial Process.

For the sake of cronyism, tyranny and corruption to protect MNAT and its clients.

As a result – the Dept of Justice rogue elements have broken the Law so profusely and docket record substantiated overwhelmingly – that MNAT’s secret clients Goldman Sachs and BAIN are getting away with organized crime.

eToys bankruptcy assets were sold to MNAT’s secret client BAIN/ KB Toys for discounts in the tens of millions of dollars. This is Collusion to Defraud an Estate by Officers of the Court.

The US Supreme Court and the Third Circuit, along with the eToys Judge’s Opinion and US Trustee’s Motion to Disgorge Traub Bonacquist & Fox – all have denoted the case of In re Hazel Atlas Glass v Hartford-Empire 322 U.S. 238 (1944) states (here) – that;

“(a) Even if Hazel [HAAS] failed to exercise due diligence to uncover the fraud, relief may not be denied on that ground alone, since public interests are involved”.

As the 3rd Circuit has affirmed and both the Delaware Bankruptcy Court and US Trustee denoted the case – it is therefore beyond contestation. Therefore, it remains inexplicable and intolerable – that our public servants are basically permitting the bank robbers to seize the bank – keep the deposits and maintain the teller windows to continue their larcenies.

Resultantly – through a series of Bankruptcy Fraud cases (eToys 01-706) – (KB Toys 04-10120) and other cases of In re Playco, the Parent Company, FAO Schwartz and even KB Toys again – MNAT”s client BAIN now owns the control of most of the independent retail toy industry.

All of that has been merged into BAIN’s new ownership of Toys R Us
(see WikiPedia history ( here ).
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BAIN’s – Toys R Us is in possession of stolen property = eToys.

As per the rules of equitable justice – where a thief cannot keep the car he stole – BAIN’s Toys R Us cannot keep the stolen property from the eToys public company. Especially since it was procured by Fraud as MNAT, eToys CEO and Confirmed Plan Administrator Barry Gold and Paul Traub of Traub Bonacquist & Fox = all have UN-disclosed connections to BAIN/KB.

The stolen property must be returned or compensated for – to a clear independent.

They cannot simply put in another crony and say they settled the issue!

Dept of Justice's very own criminal lord!

Organized Criminal Mastermind

Toys R Us possess stolen property eToys

You can see additional facts on the massive frauds – how Paul Traub was given illegal immunity and then his partner Marc Dreier went to jail for 20 years – Tom Petters went to jail for 50 years – Traub’s other secret associates Cerberus was a feeder fund for Madoff who rec’d 100 years plus and did OKUN’s from OKUN 1031 Tax Group – (where Traub and his ex partner Michael Fox worked both sides of the fence) – OKUN also rec’d 100 years in Prison.

See links to this and more at www.Petters-Fraud.com

Because – what do you think Paul Traub gets for being partners to all these crimes

POLAROID for FREE

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UPDATE Aug 31, 2011

WARNING – there are rogue elements within the Dept of Justice – seeking to subvert the Constitution of the United States for veiled agendas sake – contrary to Congressional Law!  During his tenure at the Delaware Department of Justice, US Attorney Colm Connolly’s office repeatedly declined to investigate and prosecute the MNAT law firm.

http://www.MNAT.com

MNAT had made many confessions to perpetration of intentional deception of the Delaware Federal Bankruptcy Court by the MNAT law firm.

HOWEVER – a serious Conflict of Interest Ethics violations was committed.

Colm Connolly failed to disclose the fact that he was a partner at the MNAT law firm in 2001 – the very year the MNAT perpetrated many civil & criminal code violations – including Perjury, Collusion, Scheme to Fix Fees, SEC violations, Intimidation of Victim/Witnesses, Conspiracy, False Oaths/Declarations, Perjury and Racketeering violate of California, New York and Delaware state/ federal cases.

Please see Colm Connolly’s Resume from the Department of Justice

http://www.justice.gov/archive/olp/colmconnollyresume.htm

An Organized Criminal element maintains control over the  Federal Bankruptcy Courts are the rogue parties within the DOJ US Trustee’s Office.

There are only 21 Police – the US Trustee’s -

in charge of all 1.5 million on average bankruptcy filings each year.

But there are 338 Bankruptcy Judges (here)

More than 100 felony violations occurred with confessions to 34 false affidavits (Perjury) that accomplished admitted premeditated Fraud on the Court.

Granting the criminals willful blindness allowed Marc Dreier, Tom Petters, Larry Reynolds and others to accomplish an additional $ 4 Billion dollars in fraud.

Cover UPs of MNAT & their clients

Goldman Sachs & Bain Organized Crimes

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Currently the present US Trustee’s Office is

THE Most sophisticated group of white collar criminal activity in the United States.

Our tax paid Police – the 21 US Trustee’s handle over $500 Billion dollars annually.

There is no other arm of the Dept of Justice that handles so much money with absolutely no oversight whatsoever!

http://www.petters-fraud.com/DOJ_Cover_UP.html

When the MNAT law firm and the Traub Bonacquist & Fox law firm Confessed to supplication of more than 34 False Affidavits and Deliberately deceiving the Court – the DE Dept of Justice Trial Attorney – Mark Kenney – gave Traub’s firm a Stipulation to Settle that granted Paul Traub’s firm UNlawful, implied, blanket, immunity and the promise of the DE DEpt of Justice US Trustee’s office (the Police of the Bankruptcy Court) gift to Traub of future willful blindness by the US Trustee’s office.

http://petters-fraud.com/US_Trustee_Motion_Feb24_2005_2giveTBF_immunity.pdf

You must scroll down the PDF to the WHEREAS clauses proffered by the Dept of Justice Trial Attorney.

UPDATE  Dec 19 2008

Some day soon, the DE US Attorney, Colm F Connolly, will have to explain why he declined to investigate or prosecute his former firm (MNAT) and partners for their participation into the $300 million dollar fraud in eToys and the 34 acts of perjury (MNAT confessed to supplication of 15 false affidavits to the Federal Court in DE).

Then again, maybe not – who knows how deep the corruption goes.

The one thing we do know for sure, documented by the Court Docket record of eToys docket item 2201 – is that instead of prosecuting the TBF law firm for confessing to deliberately deceiving the court through more than 17 false affidavits – the Dept of Injustice gave the TBF law firm Unlawful, implied, blanket, immunity.

Then Traub committed another $100 million fraud endeavor in the KB Toys case and the DE DOJ obstructed justice by having the evidence striken and expunged (See KB Toys bankruptcy DE 04-10120 docket item 2228 therein)

Since then, Paul Traub’s two other partners have been accused, arrested and are being held without bail for more than $2.3 billion in fraud. Tom Petters for $2 Billion, Marc Dreier for $300 million ( a separate $300 million from eToys)

http://www.petters-fraud.com/DOJ_Cover_UP.html

What are the odds, had the Federal authorities investigated and prosecuted Traub in the beginning, that Dreier and Petters would not have reached to the level of criminality they are documented to have accomplished?

We may never know!

The Law firm of Morris Nichols Arsht & Tunnel (MNAT) has confessed to filing multiple, false, Rule 2014 and Rule 2016 affidavits, in order to be paid millions in fees in the eToys case.

.MNAT was the Court approved counsel for the Debtor of eToys.  Traub Bonacquist & Fox (TBF) was the court approved counsel for the creditors of eToys.

Barry Gold was the “wind down coordinator” , then President, CEO and now Plan Administrator of eToys.

.The Law firm of TBF also confessed to filing multiple, false, affidavits to the federal court in eToys.

Today we focus on the issue that has gained national attention recently, as can be seen at the WSJ Law Blog here

Where the Wall Street Journal noted that the Wilmington Journal had begun to review the serious issue that Congress is intent upon looking into Delaware Courts bias decisions that disfavor the public shareholders and bless Executive or inner circle elite.  ( to see the Wilmington Journal article here  )

What is at stake is Delaware’s dominance of corporation filings that has blossomed into a Delaware bankruptcy Courts and attorney bonanza at the expense of the public at large by rulings contrary to Congressional mandates and common decency.

It was not my desire to be at odds with rogue personnel within the Dept of Justice. (at least we hope they are a rogue element and not the norm).  Nor was it my desire to pick upon powerful, esteemed elites of MNAT, TBF or US Attorney Colm F Connolly.

To the contrary, my desire is that this all go away with proper remedy.

I did not seek their incarceration or demise, however, they cannot steal from a company I was sworn to protect, whether they take away my right to be paid or not, the fiduciary duty Remains!

It is their arrogance and belief that they are Above the Law, that shall either assure their success in the criminality or assure their demise.

However, they, MNAT, TBF, Barry Gold and the rogue personnel within the Justice Dept, choose little ole me (actually I am a big person :0)  ) as the enemy worthy of their disdain and efforts for destruction.

My own attorney, Henry Heiman, a former Trustee in Delaware, after I had been offered inducements, warnings and more, where Heiman, feeling no worries, due to the “good ole boys” network in Delaware, Heiman emailed me a threat from Susan Balaschak of TBF.  That if I did not back off, not only would HAAS and CLI not be paid, my career would end and they would come after me.

My response was to blow the whistle.  While many said I should have found a way to take the $800,000 bribe and adapt my views.  Be the silly person I am, I reported the bribes and threats to the Dept of Justice.

This blowing the whistle, initially, resulted in confessions.  TBF and MNAT confessed to filing multiple, false, affidavits to the Courts. (more than 35, to be exact).

TBF confessed that Barry Gold was his paid associate, that TBF had paid Barry Gold four (4) separate payments of $30,000 each.

TBF, MNAT and Barry Gold also confessed that they drafted a Barry Gold Hiring Letter.

The Hiring Letter contains language that rewards Barry Gold if he does not apply to the Bankruptcy Court for persmission to be hired.

The reason the parties drafted the clandestine Hiring Letter (the letter remained hidden until Jan 25 2005 even though it was signed in June 2001) where MNAT, TBF  were warned by the US Trustee’s office not to violate Section 327(a) of the Bankruptcy Code. (the US Trustee testified to this in the Motion to Disgorge TBF for $1.6 million on Feb 15, 2005, eToys docket item 2195) as they were warned not to do a crime, the only chance they had, to get away with crimes, that were already ongoing, was to seize control of the entire estate.  The Hiring Letter would have guaranteed their success, if they had not chosen to stiff HAAS and CLI just because they had the power to do so.

The issue at hand for Delaware Courts, MNAT and the US Attorney, Colm F Connolly. Is that, despite the confessions, the Disgorge Motion and Stipulation to Settle, never, Ever, mentions MNAT. This testifies, as prima facie evidence, being an actus reus act in and of its own existence, to the very fact that MNAT is enjoying a spirit of no prosecution.

The Stipulation to Settle is an ILLEGAL document,

where the Dept of Justice in Delaware, apparently in an effort to protect MNAT, has given TBF improper, Illegal, permission to Circumvent the Code. This implies that willful circumvention of a Code or Rule, a crime in any sense of the word, has become systemic in Delaware.

The exact words in the Stipulation to Settle, flagrantly defy the Code/Rule of Law and the Dept of Justice’s fiduciary duty to the public and the courts.

WHEREAS The United States Trustee shall not seek to compel TBF to make additional disclosures

Every counsel in the world can tell you they would LOVE for such a clause to be legal. In essence that clause and setting the precedent that such is permitted, single handedly, wipes out the statutes and intent of Congress.

We do not have to prove anything else in this case, that clause, documents, by the Dept of Justice own signature, the intent to willfully circumvent the Code.

In re Middleton Arms Ltd Partnership  934 F.2d 723 (6th Cir 1991) has been affirmed by the US Supreme Ct and the 3rd Circuit.  “courts cannot disregared the clear and “unambiguous” mandate of Section 327(a)”.

When any non disclosure of conflict of interest is discovered, after the fact, the Courts must disqualify.  Not is not even within the authority of a Federal Justice to Circumvent the Law.  Because that is called, in any public citizens realm, Breaking the LAW!

Bonds, Martha and Clemens are citizens who made a false statement and all are paying through the nose for such self protection efforts.

MNAT, TBF, Barry Gold, Colm Connolly, Mark Kenney, Roberta DeAngelis, Kelly B Stapleton, Andrew Vara and anyone else in this case are “officers of the court” and thereby are held to a higher standard.   They are given their esteemed levels of trust and above average pay days, due to the fact that they are required and swear an oath to be of the highest integrity.

When they violate that level of trust, the crimes or heinousness of the highest kind. Again, it is their arrogance and Abuse of power that is the testimony of their character.  I am just the messenger.

Now Colm F Connolly is nominated to be a Delaware District Court Judge. Where Connolly’s resume became public information. By revealing that Colm F Connolly was a partner at MNAT in 2001, many ethical questions are automatically obvious.

Why has Colm F Connolly’s office refused to investigate MNAT?

Why has Colm F Connolly failed to refer the MNAT matter to the Public Integrity Section as is required by Dept of Justice protocol when the US Attorney has any connection, whatsoever, to an issue?

Did Colm F Connolly assign a case number to the issue, as the protocol of the Dept of Justice mandates, when more than one hour of time is expended on an issue?

MNAT, TBF and Barry Gold are utilizing the Stipulation to Settle permission to circumvent the law to keep quiet about the MOST important issue. Barry Gold, TBF and MNAT all have “undisclosed” connections to Bain/KB Toys.

MNAT, TBF and Barry Gold all negotiated the sale of most of eToys assets to Bain/KB.  This is Collusion to Defraud an estate.

It breaches their fiduciary duties to their respective clients, it breaches their Oaths, Declarations and Affidavits to the Court and violates Model Rules of Condcut, SarOx, SEC Regulations, Delaware State Corporate Law and many other platforms.

It is THE most serious betrayal of trust that can occur.  For MNAT, TBF and Barry Gold “sold out their client for their own benefit”.

Colm F Connolly, Mark Kenney, Roberta DeAngelis, Kelly Stapleton, Andrew Vara and everyone else knows the LAW and their fiduciary duties are to the public and the Constitution.

We do not have to prove the benefit that the Dept of Justice personnel received in their efforts of nolle prosequi (refusal to prosecute).

The failure to prosecute obvious criminal acts and the overt manner that the Justice Dept has engaged upon, in order to defend the criminality and punish this whistle blower, speaks for itself.

It is plain dumb, to continue this charade any further. It is obvious that they have reached the end of their power center. If they desire to mitigate their own demise, it would be wise to effort a honorable remedy now, to demonstrate good faith.

All their calls to the WSJ to shut down my statements had to send a message that things are heating up.

Senator Biden was informed of this stuff for years. He is at risk also.

They are the ones who choose to go all or nothing, when they already had it all, they could have given back a little, to everyone and made this issue go away.

Instead, they used their power and influence with the Dept of Justice and the Delaware Courts, going TOO FAR!

They have stolen a public company and even if you toss out Bankruptcy Code and Rules, by Delaware’s own Corporate Laws, the sale of eToys.com assets is rescindable, as it fails the “bona fide” requisite.

The push, the hard push, to make Colm Connolly a Judge, is that he then, cannot be removed, unless he is impeached.

If Delaware wants cronyism as the main character trait within its Systems, it will get what it asks for!

However, the fact remains is that this is multiple cases, multiple years, multiple parties, multiple states, involving hundreds of millions of dollars. All being done contrary to the Law.

If this was a powder substance instead of the stroke of a pen, it is obviously Racketeering.  Because they are doing such by abuse of power and you have yet to see a body in the streets, some are inclined to permit the leniency.

It is obvious however, that those that desire leniency are not the ones who lost their money in eToys.

When the RICO efforts involve those the country pays salaries of $100,000 or more per year, to defend us from racketeers, then you do not have the law, you have anarchy and cronyism.

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It is now March 2011,

Goldman Sachs and their attorneys continue open defiance of the Constitution/Law on a regular basis. Enjoying a massive Cover Up by rogue elements within our federal systems of justice – including  a US Attorney who buried the investigation/prosecution – because he used to be a partner of Goldman Sachs DE counsel’s firm (Please see US Attorney Colm Connolly’s resume with www.MNAT.com ( here )). Stating the following;

1999 – 2001 - Morris, Nichols, Arsht & Tunnell LLP  - Partner
2001 – present (2008) – United States Attorney’s Office  – District of Delaware

Plain to see is the fact that a partner of Morris Nichols, Arsht & Tunnell (MNAT) was Colm Connolly; till the latter part of 2001. The fact of the matter remains, eToys filed for bankruptcy March 7, 2001; and the fraudulent affidavits and Obstruction of Justice crimes began on (or before) that date. As a matter of jurisprudence, when Colm Connolly became the Delaware US Attorney; he was required to either give the case to the Public Integrity Section and/or appoint and independent Special Prosecutor.

The elaborate conspiracy, as well as the blatant/flagrant, extensive efforts to sweep the case under the rug and the fact that the skullduggery has crossed many state lines, over several years, in multiple cases – demonstrates clear evidence of Racketeering by the parties involved.

Stating that a law firm has an “undisclosed” relationship and/or “conflict of interest”; remains a decorum effort within the federal court system to diffuse the egregiousness and heinousness of the nefarious dealings to a vernacular soft play on words. The fact of the matter remains, Goldman Sachs is benefiting from Collusion & Conspiracy to Defraud a client (eToys); which they took IPO. Doing so by breaking the Law whenever it suits them.

In this case, Goldman Sachs attorney’s are benefiting more than 2 “un-disclosed” clients. Goldman Sachs law firm was caught by us red-handed. With more than 15 affirmatively false affidavits (Rule 2014/2016); over a period of several years. So they simply confessed ( see Deposition of MNAT ( here )).  Beyond the classic “pump-n-dump” IPO scheme; www.MNAT.com also secretly represents Mattel and BAIN (see SEC MNAT disclosure ( Here ) and MNAT defending BAIN in another fraud in excess of $100 million; which the DE Dept of Justice swept under the rug successfully petitioning ( here ) the court to Strike & Expunge our evidences ( here ).

Inexplicably, despite the confessions by MNAT attorneys; the DE US Trustee has never addressed the www.MNAT.com Fraud on the Court via 15 acts of Perjury. Actually defying their Oath to protection the Constitution from enemies both foreign and Domestic; the DE Dept of Justice put in a 3rd Cir brief that gives egregious evidence of collusion to that high court as well. As if it had to walk upon cow tow’d grounds before the Kings; the US Trustee (including the General Counsel from Wash DC) put in a statement to the Cir Ct stating the US Trustee did not and will not address MNAT issues (see US Trustee brief 1st footnote ( here )). The Third Circuit helped the schemes by concluding in its Opinion that the FRAP (Fed R App Proc) do NOT apply to this case. WOW

Compounding the organized criminal acts beyond compare, instead of protecting their client (eToys); MNAT chose to defend their cohorts and perpetrators of Fraud on the Court by Perjury (Paul Traub and Barry Gold). Defending them at every corner.

MNAT’s organized criminal efforts are massive, relentless and always endeavoring to set case precedents appalling. While remaining in defiance of the Bankruptcy Code & Rules, submitting false affidavits profuse; MNAT requested and received permission to Destroy Books n Records (see Exhibit ( here )).

The effort to Obstruct Justice by the Destruction of Books n Records is a crime because MNAT was destroying evidence that could have cost their client Goldman Sachs hundreds of millions of dollars (and quite possibly billions as a precedent). In 2002 eToys (ebc1) sued Goldman Sachs in the NY Supreme Ct (case # 601805/2002) ( here ). What is the crux of the case is the issue that eToys was paid $16.50 of the original IPO price of $18 to $20. The stock soared to as high as $85; with the question unanswered – Where did the rest of the monies go? The gaining permission to DESTROY the relevant records gained an unjust enrichment advantage for Goldman Sachs.

Making matters beyond morose; Goldman Sachs attorney actually had the unmitigated gall to get the DE Fed Ct’s permission to hand pick the firm/attorney to prosecute Goldman Sachs. This mockery of justice was made even more heinous and egregious due to the fact that MNAT selected their cohorts in Fraud on the Court by Perjury (Paul Traub). Traub’s firm also secretly works for Goldman Sachs and Bain interest.

Those crimes fight for top billing with the real tragedies. Both MNAT and Traub Bonacquist & Fox, pretending that they were diametrically opposed; petitioned the court to reject any counsel for the eToys shareholders. This crime effort has been successful as Traub and MNAT’s other secret client (Bain) acquired the bulk of eToys billion dollar company for pennies on the dollar. A crime compounded even further because this whistle-blower rejected their bribery and informed the US Trustee’s office. Everyone told us that there were no crimes; but the US Dept of Justice EOUST website informed us differently. So we fought them at every corner and stopped their plans to buy eToys for $3.5 million; getting more than $45 million in cash back into the bankruptcy estate.

Paul Traub and MNAT defeated that good faith effort also. Taking Fraud on the Court to a whole new level; the nefarious parties simply purchased all the creditors claims. Again without disclosing their connections (Bain/Stage Stores/Liquidity Solutions). To assure the schemes success, Paul Traub and MNAT placed in a secret partner of Paul Traub as eToys CEO. They drafted a clandestine Hiring Letter ( here ) that gave Barry Gold illegal permission to ignore the requisite to apply to the Court.

To cement that particular part of the scheme, Barry Gold was also named as Confirmed Plan Administrator; where he actually signed an Oath/Declaration perpetrating his own humungous Fraud on the Court by stating;

the Plan was confirmed by – extensive arm’s length agreements between Debtor (BArry Gold) and Creditors (his partner Paul Traub)

Then they furthered their criminality by getting the court to sign an Order that Barry Gold did not have to receive the Court’s permission to pay any creditors issues below $1 million dollars. The only permission Barry Gold needed was the Creditors (his partner Paul Traub).

When we overwhelmed the DE Dept of Justice with proofs of these crimes and additional crimes such as the Bain/KB Toys case (DE Bankr. 04-10120); the Deputy Director of the Dept of Justice Resigned ( Here ).

All of this was reported to the Dept of Justice Public Corruption and President Corp Fraud Task Force Units clear across the country. Instead of investigating and prosecuting them; the Public Corruption Unit was shut down and career Asst US Attorneys were threatened to keep their mouths shut or Else.

See Los Angeles Times story “Shake-up roils federal prosecutors”  ( here )

Crimes Committed that DOJ refuses to prosecute

The Law firms of Morris Nichols Arsht & Tunnel (MNAT) and the now defunct law firm of Traub Bonacquist & Fox (TBF) have already confessed to supplying more than 34 false affidavits to the Federal Bankruptcy Court in Delaware.

MNAT has confessed that it neglected to disclose it represents Goldman Sachs in Delaware and TBF has confessed that it paid four (4) payments of $30,000 each to Barry Gold prior to placing Barry Gold within the eToys estate by false affidavits and a secret Hiring Letter that gave Barry Gold permission to Circumvent the Law and the Court. 

When Barry Gold was in danger because of his perjury acts he provided the Hiring Letter as his defense on January 25, 2005.

MNAT and TBF have confessed to drafting the Hiring Letter but state that it is no big deal as Barry Gold was not really required by law to apply to the Court.

MNAT also refuses to remember who drafted the Hiring Letter.

MNAT is either guilty of drafting an item for eToys (whom MNAT represents) where MNAT did not bill for the item or MNAT did bill for the item and has purged the Docket in some manner of the facts.

All those who believe that MNAT has forgotten who drafted a letter that gives willful permission for the new “wind-down coordinator” who joined eToys post petition, the right to Circumvent the Court and the Code by his own volition, Please raise your hand?

The Dept of Justice has joined in the Fraud and Perjury by giving Illegal immunity to TBF to circumvent Code 327(a) with the following obvious unlawful language

WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures

There are more than 3 serious non-disclosure items that such a clause seeks to cover up.

1.   MNAT, TBF  and Barry Gold all have undisclosed conflicts of interest with Bain /KB

2.   MNAT, TBF and Barry Gold all negotiated the sale of eToys assets to Bain/KB for discounts in the tens of millions of dollars.

3.  TBF, Barry Gold and Xroads LLC all have undisclosed connections to Wells Fargo Foothill Capital $40 million dollar loan that transacted more than $100 million prior to eToys filing bankruptcy.

4.  eToys went Public in 1999 for $8 billion and was bankrupt by Dec 2000, where did the equity go and why did MNAT, TBF and the Dept of Justice allow the Court to approve the Order in a Bankruptcy Estate to Destroy Books n Records.

You can also read items at http://fraud-corruption-mnat.townhall.com/default.aspx

The US Attorney in Delaware, Colm F Connolly, that has thus far refused to prosecute the case is now nominated for a Judge and his resume reveals that he was a partner with the MNAT law firm in 2001, when the fraud and perjury began.

When we informed the US Attorney in California of this he shut down the Public Corruption Task Force saying it would be better for the Dept of Justice to re allocate that personnel.

At the same time the US Attorney Tom O’Brien threatened his subordinates that if they revealed the real reason he shut down the Task Force he would punish them.

http://www.latimes.com/news/local/la-me-shakeup20mar20,1,7868966.story

 

FBI begins investigation into eToys saga

UPDATE – March 7, 2011

It was anonymous information from some true public servants that led me to the knowledge that Roberta DeAngelis (the replaced REgion 3 US Trustee) was secretly promoted to General Counsel of the Exec Office of US Trustee’s (EOUST) when DOJ Deputy Director Lawrence Friedman Resigned.

Some other (or maybe same group) of concerned federal public servant(s) also informed me that the DE US Attorney (Colm Connolly) had a vested interest in burying the investigation and prosecution of the www.MNAT.com law firm.

It has now been 3 years since the US Attorney in CA actually Shut down the Public Corruption Unit and audaciously threatened Asst US Attorney’s to keep their mouths shut or else.

http://articles.latimes.com/2008/mar/20/local/me-shakeup20

Their illegal endeavor to cover up the organized criminal bankruptcy ring of Goldman Sachs, Bain, Paul Traub and MNAT has thus far succeeded. The 2 FBI agents I spoke to have never done anything of consequence. I am tempted to name them both. But will call them 1 more time.

Meanwhile – our efforts to halt the cronyism, tyranny and corruption that is incestuously infecting our federal systems of justice has given us a new break. In a week or so – we are about to submit a brief to the FBI, SEC, DOJ and IRS about a former Deputy Director of the DOJ who is involved in a scheme to defraud that also involves the Cayman Islands.

Stay Tuned!

UPdate June 7 2010

Rogue element within federal system of justice

seeks to halt investigations.

When proof was provided of cronyism,

Corruption and Cover Up.

A brother of an Asst US Attorney, (purportedly) committed suicide. Even if it was such – the fact of the matter is the tragedy might have been prevented had the DE Dept of Justice not give Tom Petters partner (Paul Traub) illegal immunity and promise of willful blindness. (see a belated press story on suicide of Marty Lackner brother of MN Asst US Attorney J Lackner (here)).

 

 

Paul Traub is partner

Tom Petters and Marc Dreier

Tom Petters with the assistance of Paul Traub, Larry Reynolds (a man under investigation by the IRS while in WISTEC) was able to achieve a $3.7 Billion dollar Ponzi Scheme and the MN DOJ declined to investigate or prosecute Petters for almost a decade. Marty Lackner was involved in $1 billion dollars of the scheme and committed his purported suicide as a man in his forties, with children and not under any publicly announced indictment (if not for his untimely demise - no one may have never known of his connection).

Madoff related party purported suicide

 

When we reached out to persons who contacted us in Florida about Paul Traub’s possible Madoff connections – Picower purportedly committed suicide  (see one initial story (here))

Then Petters associate commits suicide

Another purported suicide happened in Europe when the FBI first raided and a more recent (indirectly) connected suicide has transpired of Petters associate Denny Hecker

http://blogs.citypages.com/blotter/2010/03/to_bankruptcy_h.php

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Rogue Federal Agents Threaten Whistle Blower

We have had reviews by the DOJ, the Admin of US Courts, Senate Sgt at Arms, Fed agencies galore, NASDQ and more. The slow, but relentless wheels of justice are beginning to turn as federal investigations (legitimate) are hopefully to begin.

Prior to this time we were threatened that arrests would occur if we dared to bring the proof to the FBI, when

Check out Clocked Copy of 18 U.S.C.  3057(a) Complaint

http://petters-fraud.com/Clocked_18_USC_3057_A.pdf

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DOJ dismantles Public Corruption Unit to Bury investigation

 - the Public Corruption Unit of the Dept of Justice was dismantled and career Asst US Attorneys were actually threatened NOT to tell the Press the real reasons why – or Else.

http://articles.latimes.com/2008/mar/20/local/me-shakeup20

Paul Traub’s cohorts Goldman Sachs Fraud

Help Destroy Evidence from Federal case

 

These additional nationally significant events transpired – All directly connected to the Goldman Sachs fraud of eToys Initial Public Offering (IPO) and Bain’s benefiting from their undisclosed counsel(s) (www.MNAT.com  Paul Traub’s firm(s) (currently www.ebglaw.com and their roaming organized criminal Executive (Barry Gold – who was also “secretly” Paul Traub’s partner).

Failing to disclose the fact that MNAT and/or Paul Traub had connections to Bain/ Goldman Sachs and their affiliated persons – the Cohorts (Barry Gold, MNAT and Paul Traub’s firm(s) conspired to achieve the successful Pump n Dump of eToys.com IPO.

The very first publicly viewable certified criminal endeavor was MNAT’s Motion (approved) for Destruction of Evidence (the Books n Records of eToys)

http://petters-fraud.com/MNAT_Motion_Destruction_Books_n_Records.pdf

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DE Dept of Justice Assists in Cover Up again

Then the DE Dept of Justice had eToys primary counsel removed under the guise that Irell & Manella had a Conflict of Interest / and Irell & Manella was replaced by DE powerhouse lawfirm www.MNAT.com  recently an Irell & Manella senior exec mysteriously vanished

http://blogs.wsj.com/law/2010/05/25/coast-guard-halts-search-for-missing-irell-manella-partner/

What was not disclosed at the time is the fact that MNAT had 100 times significantly more germane Conflict of Interest(s)

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MNAT law firm Fraud of Mattel, Bain, eToys, Goldman Sachs

MNAT handled the merger of The Learning Company (a Bain affiliated entity) with Mattel (eToys largest toy industry unsecured creditor) – such – if disclosed; would have required the immediate disqualification of MNAT as the eToys Debtors counsel.

http://petters-fraud.com/MNAT_consent_Mattel_LearningCo_merger.doc

MNAT did finally get caught” red-handed supplying more than 15 false affidavits (Perjury) to the DE Federal courts. MNAT then confessed that it had failed to disclose its connections to Goldman Sachs where MNAT handled the DE bankruptcy of Finova (DE Bankruptcy 01-705) and eToys was DE Bankruptcy 01-706.

http://petters-fraud.com/MNAT_deposition_Feb9_2005.pdf

MNAT is guilty of Collusion to Defraud eToys (as eToys Debtor’s counsel) because it negotiated the sales of the debtor to Bain/ Kay Bee Toys. MNAT, Paul Traub’s firm(s) (Paul Traub’s local counsel (Frederick Rosner) went to many firms in DE carrying eToys with him) (Paul Traub’s firm (Traub Bonacquist & Fox (TBF)) was forced to disband) then Paul Traub partnered with Marc Dreier (doing 20 years in prison for $700 million in fraud) – now Paul Traub is with Epstein Becker and Green.

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$800K  attempted Bribe results in Smoking Gun

 

MNAT and Paul Traub also confessed that the post-bankruptcy petition CEO of eToys (Barry Gold) was secretly a partner with Paul Traub. They were caught after offering us a Bribe for $800,000 and then sending a Threat for us to “back off” from investigating the crimes. The DE Dept of Justice trial attorney (Mark Kenney) then made a lapse linguae stipulating he had handled the Paul Traub/ Barry Gold Conflicts of Interest in the case of Bonus Sales.  When we researched what he meant (as punishing one crime does Not give immunity to all others) we found the Smoking Gun. A vanity letterhead (footer) stating that Barry Gold and Paul Traub were partners Before Mr. Gold became CEO of eToys.

http://petters-fraud.com/Asset_Disposition_Advisors_ADA_Traubs_Letter2_Bonus_Sales.pdf

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US Trustee Program removes Region 3 Trustee DeAngelis

Director of DOJ EOUST replaces Region 3 Trustee Roberta DeAngelis when we report the Perjury / Fraud being unaddressed. The US Trustee Press release is timed the very day of our Emergency Hearing (Dec 22, 2004) to hear the Perjury/ Fraud issues.

http://www.justice.gov/ust/eo/public_affairs/press/index.htm

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Paul Traub is caught in Fraud with Barry Gold before eToys

Many items then emerge of Barry Gold and Paul Traub’s previous connections – including Stage Stores

http://petters-fraud.com/StageStores_TBF_Supplemental_Affidavit_BarryGold.pdf

Stage Stores was a southern TX bankruptcy (00-35078) that was also Co-Debtor with Liquidity Solutions and owned by the founder of Bain and had officer/ director/ stockholders like Jack Bush and Michael Glazer.  Coincidently Barry Gold worked for the director and confessed that he got many engagements due to Jack Bush (a Bain executive of many Bain entities). Michael Glazer was also CEO of Kay Bee Toys at the same time. Barry Gold and Paul Traub confessed that Paul Traub’s firm (TBF) paid Barry Gold four (4) payments of $30,000 each during Stage Stores and prior to secretly planting Barry Gold in as CEO of eToys. Where eToys then sold its assets for discounts in the tens of millions to Bain / Kay Bee Toys.

See pages 60 thru 69 of the eToys Transcript where Paul Traub was questioned by the Court directly.

http://petters-fraud.com/TranscriptMarch_1_2005_Traub_Confesses_60thru69.pdf

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US Trustee Motions to Disgorge Paul Traub $1.6 million

http://petters-fraud.com/DisgorgeMotion_TBF_1_6_Million.pdf

Less than 10 days later

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 DE DOJ gives Paul Traub’s firm Illegal Immunity.

Nothing is as illegal or solid a proof of Breach of Fiduciary duty as the DOJ Trial Attorney (Mark Kenney) document that voided the $1.6 million motion to Disgorge Paul Traub’s firm; for the Stipulation to Settle the Perjury / Fraud contains the following obvious betrayal of a federal officers oath of office;

WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures

See Stipulation pages 8 & 9 here

http://petters-fraud.com/US_Trustee_Motion_Feb24_2005_2giveTBF_immunity.pdf

While all of the addressing of Paul Traub and MNAT’s Perjury and FRaud was transpiring – they engaged in another $100 million fraud in the Kay Bee Toys case. Michael Glazer -the CEO of KB – paid himself and Bain $100 million prior to Kay Bee filing for Bankruptcy. Enigmatically MNAT is representing Bain in the $100 million Fraud and Paul Traub had the Unmitigated gall to ask the Court to be the party who prosecuted the preferential transaction. When we pointed out the Perjury/ Fraud and non-disclosure of a serious Conflict of Interest to that Court- the

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DE Dept of Justice

 has court Strike & Expunge Perjury/ Fraud evidence

http://petters-fraud.com/KenneyKB_Obstruction_2228.pdf

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Director of DOJ EOUST Resigns

After we go to Director Lawrence Friedman and seek him to hold his direct email promise to rectify the bad faith; we point out that the fraud has now exceeded $300 million and is stepping across state and case lines. Director Friedman chose discretion over valor and Resigned (going to Bear Sterns).

http://www.justice.gov/ust/eo/public_affairs/press/docs/friedman_resignation_4-27-05.htm

Dept of Justice punishes Whistle Blower $3.7 million

Because we were a Court approved liquidation consultant. The DE Dept of Justice felt we should be grateful. When Mark Kenney was told of Paul Traub’s emailed threats and made the faux pas of telling us about the Bonus Sales case (and we reported such) he became hostile. MNAT supplied a Forged document stipulating that Haas had simply Waived $3.7 million in fees and expenses. Funny thing is – if anyone reads the purported waiver – it actually stipulates in item 11 that CLI (Haas’s company) is entitled to success fees. Then the Court ruled that Haas was moot and could no longer provide evidence of the Perjury and Fraud because he had “waived” his right to be in court.  That Haas was no longer a party in interest or person aggrieved. In other words a person has standing to waive an item – but not standing to point out the purported waiver is Fraudulent.

http://petters-fraud.com/Haas_Affidavit_816.pdf

DE Bankruptcy Ct states

Lying Under Oath is Not Perjury

Paul Traub’s firm(s) and MNAT have already Confessed to more than thirty-four (34) false affidavits and Deliberately deceiving the Court. This is Fraud on the Court by Perjury. But the Judge, when we appealed the ruling that Haas and Collateral Logistic’s Inc., (CLI) is dismissed with prejudice – stated No Perjury was documented and refused to refer the matter to the US Attorney’s office  (as is required of all Judges under 18 USC 3057(a)). This bogus opine, 6 months after the confessions, came of the court only came after we timely appealed to the US Dist Ct. See page 52 of the OPINION of Oct 4, 2005 that approved the unlawful immunity for Paul Traub’s firm.

http://petters-fraud.com/MFW_Opinion_Oct4_2005_granting_TBF_immunity.pdf

Haas and eToys shareholders appeal all the bogus rulings to the DE Dist Ct and 3rd Cir Ct.

The Third Circuit dismisses Haas’s appeals affirming that Haas simply “waived” his right to be heard and that he is a disgruntled claim holder who was a security guard / transportation guy at eToys.

Third Circuit states FRAP Does Not Apply in eToys

see page 7 http://www.ca3.uscourts.gov/opinarch/072360np.pdf 

DE DOJ States it will Not pursue MNAT

see 1st footnote of brief

http://petters-fraud.com/US_Trustee_Obstruction_3rdCir_07_2360.pdf

Roberta DeAngelis secretly promoted to GC of EOUST

We were given several tidbits by federal persons who really believe in their oath of office. One germane item is the hidden fact that the removed Roberta DeAngelis was quietly/ secretly promoted to the post of Acting General Counsel of the EOUST. Thus when the FBI, SEC, OSC, OPR, Public Integrity Section, the OIG, OGE, President Bush Corporate Fraud Task Force all told us to go to the GC of the EOUST and the local US Attorney – they actually were telling us to go to parties who were being asked to investigate themselves.  When we reported this – the DOJ US Trustee press release was finally released and Region 3 Kelly Beaudin Stapleton Resigned (and was replaced by non other than Roberta DeAngelis)

http://www.justice.gov/ust/eo/public_affairs/press/docs/2008/pr20080502.htm

US Attorney is partner with Conspiracy to Defraud eToys

We were also then informed something we could absolutely not believe. The DE US Attorney (Colm Connolly) who was refusing to investigate and prosecute the crime had his own Conflict of Interest. Colm Connolly was secretly a partner with MNAT in 2001 (the very year MNAT began their Perjury/ Fraud in eToys). Therefore Connolly had to either refer the matter to the Public Integrity Section or assign an Independant Prosecutor. See Colm Connolly’s resume

http://www.justice.gov/archive/olp/colmconnollyresume.htm

CA US Attorney Threatens Career Prosecutors to Keep Silent

We also had federal justices who did not like what they saw, including persons who helped draft the Bankruptcy Code/ Rule of Law. We were given an Official Court form (to make them aware we had friends) of 18 USC 3057(a). We were also told to submit such with a brief of details and have each and every page time stamped (Clocked Copy)

http://petters-fraud.com/Clocked_18_USC_3057_A.pdf 

http://petters-fraud.com/CLocked_18_USC_3771.pdf

http://petters-fraud.com/ClockedCopyHAASmotionKBcaseMisPrisionFelony.pdf

Shake up of Federal Prosecutors

http://articles.latimes.com/2008/mar/20/local/me-shakeup20

There is SOooooo much more to this story. eToys is suing Goldman Sachs for $500 million in NY Supreme Ct. Problem is Paul Traub’s firm and Barry Gold (both who have a vested interest in the crimes and work with Goldman Sachs at the time)  are running the case. Paul Traub was hand picked to prosecute the matter by Goldman Sachs DE Attorney MNAT. Not only is the proceeding a Sham – because we caught them previously by faux pas of sorts in the public docket record – nearly 1/2 the entire NY Supreme Ct case (# 601805/2002) is Under SEAL.

Then you have not one – but two judges who went after Paul Traub’s firms for their bad faith. One was promoted off the case to the NY Supreme Ct of Appeals – the other (who threatened the counselors that “their lives were on the line”) was promoted 3 weeks later to the 3rd Cir Ct.

Then the DE Federal Ct and 3rd Cir dismissed the case stating the Federal Rules of Appellate Procedures does Not apply to Bankruptcy Ct decisions to the Federal Dist Ct.

Then there is the issue of Jack Abramoff trying to illegally seize control of the Region 3 US Trustee’s office

see page 12 of the Congressional archives at this weblink

http://petters-fraud.com/Congress_Copies_Abramoff_email_2_getUSTpg12of50.pdf

Abramoff went DOWN because his partner’s haughtier (Johann Hamerski) he offered a $175,000 bribe to eToys shareholder Robert Alber and when Alber said NO – Hamerski threatened to have him killed. Johann then began a campaign against Alber spending $1 million dollars in effort to destroy him. Alber had 2 nervous break downs and ultimately had to endure Brain surgery. Hamerski was tricked to believe he would put Alber in jail – where he travel to AZ and then they upgraded the recording equipment as Alber received a Dream team (OJ like) of Public defenders who wield in carts of files and held Johann Hamerski on the stand in AZ for two days – then Abramoff went through hell.

But the real big story beyond the many specious deaths related to Paul Traub affairs is the fact that Traub Bonacquist & Fox partner (Harold Bonacquist) is listed in the NY State Bar and Supreme Ct as to be contacted through the US Embassy/ Consulate General of the Philippines to make an appointment with him in Istanbul (a non extradict)

http://www.archons.org/news/detail.asp?id=289
Traub’s Partner Marc Dreier and Tom Petters

committed hundreds of millions and billions of dollars in fraud – AFTER the DE Dept of Justice granted Paul Traub illegal immunity in 2005. There is no doubt those billions of dollars in schemes (and some of the related suicides) could have been avoided – had the Feds did thier job in 2005. Marc Dreier got 20 years – Tom Petters got 50 years – and Paul Traub worked the debtor side of Okun’s 1031 Tax Group as Michael Fox (TBF partner) worked the Creditors’ Trustee side. Okun got 100 years.

But the REALLY BIG STORY is the founder of Bain, whom Traub and Barry Gold met at NeoStar, worked with at Stage Stores and is the single greatest reason (next to DE former Senator being VP – who actually was carted around by Tom Petters airline (Sun Country)).

The single greatest reason why Bain bought KB in 2000, then Bain/ KB bought eToys, who was in bankruptcy. Then Liquidity Solutions (Stage Stores Co-Debtor) bought up all the claims.

Update July 15  2009

NY Supreme Court FRAUD

Hopefully the FBI, NY Supreme Ct, 1st Department and AG Cuomo will look into the on going $500 million in fraud in the NY Supreme Court case 601805/2002

Where nearly 1/2 the docket is Under SEAL!

Paul Traub and his firm – specifically Susan Balaschak (now with Akerman Senterfitt) lied to the NY Sup Ct in the case of eToys (ebc1) v Goldman Sachs (case # 601805/2002).

Of the many deceptions proffered upon the NY Supreme Ct is the failure to disclose that Paul Traub’s firm was hand-picked to handle the case by the MNAT law firm in DE.

MNAT is a co-collaborater with Paul Traub to plant Barry Gold secretly within eToys as President/CEO and confirmed Plan Administrator.

It is now confessed that Barry Gold is also a paid associate of Paul Traub’s firm of Traub Bonacquist & Fox (TBF) and a partner with Paul Traub in Asset Disposition Advisors (ADA)

More significant is the fact that MNAT is Goldman Sachs local counsel in DE and received a slap on the wrist sanction for failing to disclose this issue to the DE Federal Court – utilizing more than 15 false affidavits over several years to withhold the information.

Susan Balaschak even testified to the NY Supreme Court that the Creditors Committee (renamed the Post Effective Date Committee (PEDC)) was informed of Everything that was going on (see her testimony NY Sup Ct docket item 216 http://petters-fraud.com/SusanBalaschakAffidavit_NYSupreme_DI_216.pdf

Of the many false remarks in the Declaration by Susan Balaschak is the testimony that the three (3) co-chairs of the PEDC is LEGO, Fir Tree and Fisher Price.

Susan Balaschak is failing to inform the NY Sup Ct that both the Director of Credit at Mattel (Chairman of the Creditors in eToys and Mattel owns Fisher Price) and the Director of Credit at Fisher Price were “speciously” coerced to leave their offices early. The Director at Fisher Price was removed after he promised this whistle-blower that he would look into the matter directly. The former Chairman from Mattel had put in an affidavit that MNAT, Traub, Barry Gold and the party that gave Paul Traub’s firm unlawful implied, blanket, immunity had it stricken from the record (see Obstruction of Justice  item http://petters-fraud.com/KenneyKB_Obstruction_2228.pdf 

Compounding the egregious behavior is the fact that Scott Henkin, the Exec at Fir Tree Value Fund – had confessed to us that he had given his “off the record” approval of the Non-disclosure of the relationship between Barry Gold and Paul Traub.

When we reported this to the Court = Scott Henkin threatened Laser Haas and then was speciously promoted to Senior Executive of DE Shaw. Real egregious behavior considering the fact that Bain sold eToys.com to DE Shaw and Scott Henkin became part of that firm.

After we reported this discovery the founding party DE Shaw himself – Resigned.

Fianlly – Susan Balaschak offers the NY Supreme Court Ellen Gordon as corrobative witness – this to is fraud on the court – as Xroads LLC no longer has Ellen Gordon working with them and Ellen Gordon was Barry Gold’s right hand person who also did her absolute best to nix ever deal to merge the public entity of eToys.

Xroads LLC, Paul Traub and Barry Gold have much to fear as they all work with Wells Fargo – and Foothill Capital (a Wells Fargo entity) loaned eToys $40 million November 2000 and transacted over $100 million prior to March 7, 2001.

The failure to review this preferential and submit affidavits stipulating there is no conflict of interest is already established as a criminal act. Where in the case of In re Bucyrus 94-20786 (ED Disc Wisc 1994) Gellene of Milbank & Tweed firm went to jail, Milbank Firm had to disgorge their entire $1.9 million and lost over $20 million litigation.

You can see the story in the book “Eat What You Kill” the Fall of a Wall Street Attorney by Milton C Regan.

Coincidently the $35 million dollar loan in Bucyrus involved a former Goldman Sachs associate.

Milbank refused to return the $1.9 million until the Court stipulated that it would subpoena Gellene to testify!

More than 100 felony violations plus 34 acts of perjury to perpetrate Fraud on the court – including one of the first Motions MNAT sought was the Destruction of Books n Records (eToys DE Bankr 01-706 docket item 300).

You can see many links (court docket proofs and newspaper items) on the DOJ and Court cover ups of Paul Traub, Barry Gold, MNAT, Goldman Sachs and Bain;

Including the fact that eToys lawsuit against Goldman Sachs in NY Sup Ct has nearly 1/2 of the docket Under SEAL

www.petters-fraud.com/DOJ_Cover_UP.html

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UPDATE July 2, 2009

These items are testified for all federal agents including the Admin of US Court’s and Senate Sgt of Arms readings – Under Penalty of Perjury by Steven Haas (a/k/a Laser Haas) – this the 15th day of July 2009.

The walls are closing in on the Organized Criminal element – a/k/a  a Bankruptcy Ring – of Paul Traub and his cohorts.

After initial discussions with the FBI Special Agents on the east coast and west coast – it appears the wheels of justice turn slowly.

However – with the compounding factors that both of Paul Traub’s former partners were arrested (Tom Petters and Marc Dreier) for $700 million and $3 Billion in fraud schemes – the case appears to have heated up somewhat.

With additional information being given to multiple state AG’s, the SEC OIG and local SEC, IRS, FBI task force teams – one can only continue to dance a nervous jig waiting for the swift/hard hammer of justice.

Paul Traub has confessed to acts of Perjury, but the DE federal courts, due to his purported efforts to bring many cases there – have thus far turned a blind eye to Perjury & Fraud and the Court initially said that no perjury was documented.

However, the Chief Justice and DOJ Trial Attorney that have turned a blind eye to the perjury/fraud- now have much explaining to do. The Chief Justice is winding down her cases and retiring and it is only a matter of time before the DE DOJ Trial Attorney and Region 3 Trustee  are replaced.

Of the many crimes Paul Traub, Barry Gold and the MNAT law firm have committed include, but are not limited to;

  • § 1621. Perjury generally
  • § 1622. Subornation of perjury
  • § 1623. False declarations before grand jury or court
  • Also Barry Gold, Paul Traub and the MNAT law firm violated nearly every single section of

    18 USC 152 & 157

    http://www.usdoj.gov/usao/eousa/foia_reading_room/usam/title9/41mcrm.htm

    One would be much harder pressed to find a section Traub and his cohorts did not violate – rather than the easy pathway of documenting all the felony violations that Transpired.

    Traub also threatened this whistle-blower to “back off” and was so powerfully entrenched within the DE system – the DOJ in DE and the DE BK Court simply ignored the allegation – because Laser’s attorney actually was lacking in intelligence enough that he “emailed” the threat.

    Traub, Barry Gold and the MNAT law firm submitted a brief to the DE BK Court stipulating that Laser Haas and his court approved company, Collateral Logistics Inc (CLI) – was so generous that they “waived” the entire fees and expenses (est $3.7 million)

    Funny thing is – the very document that was submitted actually states that CLI can seek success fees (see item 11 http://petters-fraud.com/Haas_Affidavit_816.pdf )

    One does not know which is more lacking in sound judgment – the fact that perpetrators of fraudulent documents to the court did not have sense enough to fake the document in its entirety or the intolerable premise that the Court and DOJ would back up the fraudulent endeavor and accept a paper that is obviously bogus.

    Nothing is as illegal or solid a proof of Breach of Fiduciary duty as the DOJ Trial Attorney (Mark Kenney) document that voided the $1.6 million motion to Disgorge Paul Traub’s firm;

    for the Stipulation to Settle contains the following obvious betray of a federal officers oath of office;

    “WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures”

    See Stipulation pages 8 & 9 here

    http://petters-fraud.com/US_Trustee_Motion_Feb24_2005_2giveTBF_immunity.pdf

    What is almost laughable – if it were not so morose – is the fact that the Motion to Disgorge Paul Traub’s firm is digitially signed by Mark Kenney and it testifies therein – Twice – that the US Trustee forewarned the parties NOT to replace key exec’s of the eToys Debtor with anyone connected to the retained professionals (see parts 19 & 35)

    http://petters-fraud.com/DisgorgeMotion_TBF_1_6_Million.pdf

    While only addressing 3 felony violations – the Disgorge Motion concludes that Fraud on the Court transpired.

    The US Supreme Court has stated (and the 3rd Circuit has affirmed the premise) that Fraud on the Court by Officers of the Court is an extra-ordinary circumstance that expunges the statute of limitations. Please see case of In re Hazel Atlas Glass  http://altlaw.org/v1/cases/383006 

    Additionally, Mark Kenney also Obstructed Justice by petitioning to strike & expunge proofs of perjury/fraud of Traub in the Kay Bee Toys Bankruptcy case.

    http://petters-fraud.com/KenneyKB_Obstruction_2228.pdf

    Also Mark Kenney and for Region 3 Trustee Roberta DeAngelis who is now back in as Region 3 Obstructed Justice with the brief that stipulates in the footnotes that it did not and will not address MNAT issues.

    http://petters-fraud.com/US_Trustee_Obstruction_3rdCir_07_2360.pdf 

    Mark Kenney also instructed the SEC to back off from initiating an official investigation – according to Gordon Robinson – who is apparently no longer with the SEC (or changed his email).

    —————–

    WARNING – there is an Organized Criminal element that has illicit influence over the DE Federal Bankruptcy Court !

    Please take the time to review the facts documented below – For Your Sake!

    The US Trustee was replaced, the Asst US Trustee made a Motion to Disgorge for $1.6 million – then 9 days later the DOJ Trial Attorney voided the Motion to Disgorge and gave the perpetrators  immunity – despite the fact that they Confessed to 34 false affidavits in order to Deliberately Deceive the Federal Court in $200 million in fraud.

    Then the perpetrators tested their impunity level and committed another $100 million fraud and the same DOJ Trial Attorney petitioned the Courts to Strike & Expunge the proof of Perjury and Fraud on the Court.

    Resultantly the Director of the Exec Office of United States Trustee’s in Washington DC RESIGNED (here) and the Asst US Trustee stepped down as well.

    We informed the FBI, OIG, Public Integrity Section, OSC, OPR, OGE, Pres Bush Corp Fraud Task Force, the SEC and many more.

    All of whom referred us to the local US Attorney and the General Counsel of the EOUST.

    Unfortunately the removed Region 3 Trustee was quietly and speciously promoted to the post of Acting General Counsel of the EOUST. The quiet part is the fact that there was no press release on the high level promotion until years later when we discovered the issue – the specious part is her office was in charge of investigating her case

    and NOW – she has been placed back within to clean up her own mess (see belated DOJ UST press release (here))

    We all find it rather Odd that there are no other US Trustee press releases since Oct 2008!

    We also discovered the fact that the Local US Attorney in DE, whose office refused to investigate or prosecute the Perjury & Fraud failed to disclose the fact that he was a partner with the MNAT law firm in 2001 – the very year that MNAT confessed to failure to inform the Court of the Non Disclosure of Conflicts of Interest.

    You normally could see the USDOJ Office of Legal Policy copy of his Resume (here) – but they have yanked it down – we kept a Print Screen Copy for anyone who wants it.

    Then we reported those Ethics Violations and Model Rule of Conduct issues to the US Attorney in CA – who never responded.

    However;

    The Los Angeles Times reported on a story “Shake-up roils federal prosecutors” – where the central CA USA walked into a weekly staff meeting and summarily disbanded the Public Corruption Unit (here)

    If you read the entire LA Times story – you will see that it reports that DOJ personnel were Threatened to remain silent OR ELSE!

    The party that was given immunity was Paul Traub’s firm of Traub Bonacquist & Fox.

    The relevance outside of the previous eToys.com fraud is the basic fact that Traub as Creditors counsel placed his partner (Barry Gold) within eToys as President/CEO – and MNAT helped draft the Hiring Letter that stayed hidden until we documented the Perjury – it contains a clause that allows Barry Gold to choose – whether or not – to apply to the Court per Section 327(a).

    Barry Gold committed on the stand Perjury denying his connections to Traub when an eToys shareholder questioned him in 2002 after he supplied a Plan Administrator’s Declaration – Under Penalty of Perjury – stating that the Plan involved “extensive” “arms length” and good faith negotiations between Debtor and Creditor.

    That is between Barry Gold and his partner Paul Traub.

    The DE Bankruptcy Court warned this whistle blower to back off – as did Paul Traub’s firm – where Susan Balaschak and the whistle blowers own Attorney emailed a Threat that if Laser Haas did not Back Off – not only would he and the Court approved company (CLI) that he owned – they would not get paid – Laser’s career would be destroyed and they would come after him for previous earnings.

    When the WSJ released an article the day after the Threat was made July 25, 2005 (here)

    It is Our Federal System of Justice that has become an Organized Criminal Enterprise and the fact that this whistle-blower failed English and was spanked by the Houligans should not by the basis for apathy or lack of introspect.

    The EOUST replaced the Region 3 Trustee Dec 22, 2004. The US Trustee press release stated the new party is experienced in Fraud matters (here)

    Making the crimes extensively egregious and heinous is the fact that the US Trustee testified it forewarned the parties NOT to replace key personnel of eToys with anyone connected to the retained professionals (as such is against the Law Section(s) 101(14), 327(a) and Affidavit Rules 2014,2016) (see Disgorge Motion parts 19 & 35 (here))

    The Disgorge Motion concluded, when it did not know of the 100 other crimes that transpired – that the acts of deception were deliberate, rather than inadvertent and Traub’s firm had perpetrated Fraud on the Court.

    So it remains inexplicable – that the US Trustee’s website Tout’s its fiduciary responsibility to monitor and Police Fraud (see UST website right hand top corner (here)) – yet the DE DOJ Trial Attorney gave Paul Traub’s firm Unlawful immunity and the promise of the US Trustee to refrain from its fiduciary duty as is testified in PDF pages 8 & 9 (here) as the Stipulation to Settle the Disgorge Motion that is Proffered by the US Trustee states;

    WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures

    Researching what would prompt the DOJ to offer future willful blindness – led us to the discovery of additional crimes.

    Seems MNAT, Barry Gold and Traub all have a working relationship with Bain and Goldman Sachs.

    eToys sold the bulk of their assets to Bain/ KB for discounts in the hundreds of millions and MNAT, Traub and his partner Barry Gold negotiated the deals.

    This is Collusion.

    KB filed two bankruptcies, in the one DE Bankr 04-10120 – Michael Glazer as CEO of KB paid himself, others and BAIN $100 million – prior to the Bankruptcy Filing.

    The party representing BAIN is MNAT

    Michael Glazer was a director and shareholder of Stage Stores – and Barry Gold / Traub’s firm worked for Stage Stores and their Directors (Stage Stores is mostly owned by Bain associated parties)

    Then Paul Traub petitioned the KB Toys Court to be the one to prosecute the $100 million dollar preferential that MNAT was defending.

    Akin to Capone asking Frank Nitti to be the one to prosecute him.

    When we pointed out those crimes to the Court – the same DOJ Trial Attorney (Mark Kenney) petitioned the Court to Strike and Expunge the proofs of Perjury and Fraud (here)

    This was not the only time Mark Kenney and his associates Obstructed Justice – he also asked the SEC to back off from initiating an official investigation and Mark Kenney, Roberta DeAngelis (as Acting GC of the EOUST) among others petitioned the 3rd Circuit Court to Expunge the case.

    They were defending their brief that offered immunity to Traub that the DE Bankruptcy Court approved when the whistle blower appealed the DE Bankruptcy Court’s decision to honor Paul Traub’s threat.

    Paul Traub, MNAT and Barry Gold told the DE Bankruptcy Court that whistle blower generoursly waived its $3,7 million in commissions and fees. For eToys was selling all their assets to Bain/KB for $5.4 million. When Laser Haas and his company CLI helped get back over $45 million to eToys bank accounts he had no idea that the reason those parties were making it so HARD to sell – was they were selling eToys to themselves.

    When Laser Haas told the DE Court that the Affidavit was a forgery  and pointed out to the Court that the very document the parties claim is a Waiver – states that CLI can seek success fees’;

    The Court said that the whistle blower does not have standing as a person aggrieved – seems you need the court’s permission to point out criminality!

    Does not matter much – as Stage Stores was Co-Debtor with Liquidity Solutions.

    Right after Paul Traub and MNAT secretly planted Barry Gold within eToys as President/ CEO – Liquidity Solutions and related companies began buying up the eToys claims.

    Barry Gold has thus far paid out over $10 million in fees to Traub, MNAT and others that participated in the Cover Up’s.

    Where the other $30 million plus has gone and how much to the Liquidity Solutions accounts – despite the fact that they are Collusions – will never be known.

    Currently eToys (for the shareholders sake and creditors) is suing Goldman Sachs in the NY Supreme Court.

    Being that MNAT represents Goldman Sachs in DE – MNAT nominated Traub’s firm to do the work and the Court approved Traub’s Supplemental Affidavit – that he confessed was false.

    It is also learned that Traub’s NY co-counsel of Wachtel helped with Barry Gold’s Director & Officers (D&O) insurance in eToys.

    Traub and his cohorts know that he was caught red-handed by Laser Haas due to mistakes forgotten in Court docket records – this may explain why half the NY Sup Ct case 601805/2002 is Under SEAL.

    At the same time one of the very first eToys documents that the DE Court approved of – at the behest of MNAT – was the Destruction of eToys Books n Records.

    Despite that Destruction – the whistle blower found $2 million in cash deposits hidden overseas that David Haddad was trying to keep hidden.

    Whistle blower Haas also discovered that Foothill Capital loaned eToys $40 million in November 2000 and transacted over $100 million that was paid to Wells Fargo prior to the March 7, 2001 bankruptcy filing of eToys.

    Barry Gold, Xroads LLC and Paul Traub all having a working relationship with Wells Fargo.

    This is a crime of Collusion to Defraud an Estate as is well established in the on point case of In re Bucyrus 94-20786 (E D Wish 1994) The book written by Milton C Regan of “Eat What You Kill” the fall of a Wall Street attorney – documents how a $35 million dollar loan (by a former Goldman Sachs guy) was never reviewed and Gellene went to Jail as Milbank Disgorged it’s entire $1.9 million and lost a $20 million dollar + litigation.

    If the reader here does not understand the harm that was being done by the duplicity of the DOJ giving Paul Traub immunity, then I guess it does not matter either that both of Paul Traub’s other partners – Marc Dreier and Tom Petters – committed $700 million and $3 Billion in Fraud!

    PRevious writings—————–

    On Dec 22, 2004, an Emergency hearing transpired at the DE Bankruptcy Court to address Perjury & Fraud.

    When the MNAT law firm and the Traub Bonacquist & Fox law firm Confessed to supplication of more than 34 False Affidavits and Deliberately deceiving the Court – the DE Dept of Justice Trial Attorney – Mark Kenney – gave Traub’s firm a Stipulation to Settle that granted Paul Traub’s firm UNlawful, implied, blanket, immunity and the promise of the DE DEpt of Justice US Trustee’s office (the Police of the Bankruptcy Court) gift to Traub of future willful blindness by the US Trustee’s office.

    http://petters-fraud.com/US_Trustee_Motion_Feb24_2005_2giveTBF_immunity.pdf

    You must scroll down the PDF to the WHEREAS clauses proffered by the Dept of Justice Trial Attorney.

    When those that are paid to protect and serve, seek to abuse that esteemed position of power and trust for the benefit of cronies you have not a measure of law and civility, you have the recipe of disaster that begins as anarchy that ultimately has to foster deep civil unrest!

    Hopefully anarchy will not find itself halted in its tracks due to the one entity that is questioned from time to time, but the American public still believes is true blue.

    The FBI!

    It is not in contention that false affidavits, by sophisticated bankruptcy counsels were supplied to the Federal Court.  For they have confessed to the fact.  Both the MNAT and TBF law firm have confessed to filing multiple false affidavits.

    Upon the discovery of the fraud and perjury issues, Lawrence Friedman the Director of the US Trustee program in Washington DC did remove Roberta DeAngelis as Region 3 Trustee over Philadelphia and Delaware (please see the press release of Kelly B Stapleton here

    What is neglected in the confessions to the multiple (and some admitted as intentionally left false) affidavits, is the documentation that they have admitted to more than 34 false affidavits.

    Additionally, TBF and Barry Gold have confessed to drafting the egregious, Hiring Letter that gave Mr. Gold illegal authority to Circumvent the Code and the Court by his own volition. While MNAT states that they cannot remember who participated in the drafting of the letter at their firm.

    Either MNAT did not draft the letter and has a fiduciary duty to its client (the eToys bankrupt estate) to report the item to the court.

    OR

    MNAT did participate in the drafting of the Hiring Letter and has to explain how in the world they did work for eToys that they did not bill for. For the very notion that they drafted the Hiring Letter and made the billable hour not appear is a criminal prima facie evidence of mens rea by an actus reus item.

    More importantly, the Dept of Justice testified that the “parties” had discussions with the US Trustee’s office concerning replacing key personnel of the eToys Debtor and the US Trustee testified that the Trustee’s office warned the “parties” not to replace key personnel of the Debtor with anyone connected to the retained professionals of the case. As this would violate the “unambiguous” language of Bankr Code 327(a).

    After the Dept of Justice testified about this item, the Dept of Justice attorney for the new Region 3 Trustee, specifically Mark Kenney, did sign a Stipulation to Settle that gave TBF law firm implied, blanket, Illegal, immunity with the following unlawful language;

    WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures“.

    This clause is illegal as the US Trustee’s office is the policing “watchdog” for the sake of public equity protection, as per the Janet Reno Reform Act of 1994 as well as the fact that the whole design of the US Trustee program, as part of the Dept of Justice, is noticed upon every single press release of the US Trustee program, that states the following;

    The United States Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws

    Yet, somehow, for an inexplicable reason, the Dept of Justice is utilizing the US Trustee program to give implied, blanket, immunity to Organized Criminal activity that is not in contention.  The parties have confessed to their acts that disregarded the US Trustee warning. 

    Barry Gold submitted the Hiring Letter that was never revealed nearly 4 years after the date it was purportedly signed. Being supplied, in what has to be one of the great attorney slip up’s of this case, as a defense exhibit by Barry Gold himself. 

    The Hiring Letter documents willful intent to circumvent the Court and the Code by a collaborative effort. Being provided by Barry Gold himself, it is irrefutable.

    Combined with the fact that Barry Gold testified, on the stand, that he was not connected to TBF, while both TBF and MNAT have confessed that they filed multiple false affidavits, where the Hiring Letter now demonstrates motive and purpose.  One has to ask what is the motivation and reasoning for the Dept of Justice to breach its fiduciary duty.

    Cui Bono?

    The fact remains, even if the US Trustee states it will deliberately fail to perform its fiduciary duty, is no justification for the Court to jump on the band wagon of lawlessness and agree that such “breaking of the law” is O K.

    Doing so is an act of sedition to ones Oath of Office and grounds for impeachment.

    Additional reasons why the Dept of Justice is seeking to Cover Up the whole affair, may be due to the more recent discovery that the US Attorney in Delaware, Colm F Connolly was a partner with the MNAT law firm in 2001.

    At the barest of minimums, Colm Connolly’s office is guilty of conflict of interest, protocol violations, ethics violations and Model Rule of Conduct violations for not referring the matter to an independent prosecutor or the Public Integrity Section.

    Combined with the fact that the US Trustee disgorge motion only mentions the TBF law firm, even though the MNAT law firm confessed to filing multiple false affidavits also and had to participate in either covering up the Hiring Letter or fostering the scheme to defraud the court.

    Made more morose by the fact that the Dept of Justice attorney, Mark Kenney, also does not mention MNAT issues when it seeks to give implied, blanket, Illegal, immunity to TBF.

    An immunity issue that has apparently become wholesale and adopted by all as we have now also discovered that one of the items the “not seek to compel” clause desires to cover up is the fact that TBF, MNAT and Barry Gold all have undisclosed connections to Bain.

    MNAT, TBF and Barry Gold all negotiated the sale of eToys assets to Bain/ KB for discounts in the tens of millions of dollars, while not only remaining undisclosed about their connections to Bain and KB, they also now have confessed to filing more than 34 false affidavits stating they had no conflict of interest issues.

    MNAT is now also discovered to have been working with Mattel , Learning Co merger (also a Bain party connection) and being less than candid about the Learning Co issue, MNAT convienently neglected to disclose the issue that the Learning Company merged with Mattel as doing so would have automatically disqualified MNAT representation of eToys Debtor.

    Now we have the Dept of Justice breaching their fiduciary duty so maliciously that the US Trustee program, with the General Counsel from Washington DC is acting as an appellee, defending Barry Gold, TBF and MNAT in the 3rd Circuit appeal case 07-2360.

    By the way, the Acting General Counsel for the Dept of Justice EOUST office in Washington DC is the former removed Roberta DeAngelis as Region 3 Trustee.

    DeAngelis is now apparently promoted to the position of being in charge of investigating her own cases.

    Lawrence Friedman had replaced DeAngelis with a press release that occurred Dec 22, 2004, the significance of the date is it was the very day of the Emergency hearing in eToys where the Court Ordered the parties to answer the allegations by January 25, 2005, in accordance with Local Rules.

    They, the parties of MNAT, TBF and Barry Gold had no choice but to admit to the false testimony, for the proof provided by Laser Haas was Court docket affidavits of the TBF and Barry Gold.  They therefore could not continue to deny their own handwriting that had been previously hidden, now discovered by a lapse linguae and the Public Access to court docket records that began in 2001.

    Then a hearing on Feb 1, 2005 occurred where the Court then Ordered that Haas and the eToys shareholders could depose TBF, MNAT and Barry Gold on Feb 9, 2005.

    The US Trustee told the Delaware Federal Court that it would make its position on the issues known, prior to Frank Perch’s scheduled travel of Feb 16, 2005.

    After the Depositions provided additional proof of fraud and perjury, Frank Perch emailed the US Trustee motion to Disgorge on Feb 15, 2005 as promised. (eToys docket item 2195)

    Then, less than 10 days later, Mark Kenney made moot the Disgorge Motion for $1.6 million and supplied the Illegal immunity provisio to TBF (and the rest purportedly) on Feb 24 2005 as a Stipulation to Settle the US Trustee Disgorge Motion (eToys docket item 2201)

    Then, the March 1, 2005 hearing occurred to address the issue of fraud and perjury, where the Court speciously Ordered that Laser Haas could no longer speak and that they would not enter the Chairman of the Creditor Committee affidavit into the record that day. (asthe Chairman was who TBF was engaged by, the affidavit testimony that TBF defrauded the Creditors Committee would dam TBF to criminal liability).

    However, during the March 1, 2005 hearing, the transcript of which is in the record as eToys docket item 2228.  Paul Traub of TBF not only confessed again to filing the false affidavits he also admitted to the Court that TBF paid Barry Gold 4 separate payments of $30,000 each prior to placing Barry Gold within eToys as a “wind-down coordinator” who then became President, CEO and now confirmed Plan Administrator.  Where Barry Gold has authorized more than $12 million in payments to TBF, MNAT and other connected parties illegally.

    Laser Haas had received a direct email from Lawrence Friedman that he would address the issues of the case by his staff appropriately.  Where the removal of Roberta DeAngelis and the Disgorge Motion seemed to provide proof that Lawrence Friedman was performing his fiduciary duties when others would not.

    Then, the Stipulation to Settle occurred.

    Then, Paul Traub gave the additional testimony of paying Barry Gold prior to placing him “in secret” within eToys.

    Then, we discovered the MNAT, TBF and Barry Gold connections to Bain/ KB Toys and the Collusion to Defraud the Estate.

    Then Laser Haas also learned that Scott Henkin of Fir Tree Value Fund had approved, “off the record” of the Barry Gold and Paul Traub connections.

    Then Laser Haas discovered that MNAT, Barry Gold and TBF were also attempting another $100 million dollar cash fraud in the KB Toys bankruptcy case.

    Then, Mark Kenney, the Dept of Justice attorney for the Region 3 Trustee, defended MNAT, TBF and Barry Gold by successfully getting the Delawre Federal Court to strike and expunge HAAS’s testimony.

    You can see the written proof of this Obstruction of Justice Here

    Then Laser Haas informed Lawrence Friedman of the additional perjury and fraud efforts with Mark Kenney’s overt acts of Obstruction of Justice.

    Then Lawrence Friedman resigned  (Please see Dept of Justice press Release here

    Also Frank Perch quietly did exit or resign at the same time.

    Speciously, you will not find any press release by the Dept of Justice about Roberta DeAngelis promotion to General Counsel for the EOUST office in Washington DC. (you can see all press release by the Dept of Justice HERE

    The Delaware Bankruptcy Court then held a hearing as the Wall Street Journal had reported on the TBF disgorge settlement HERE

    The Delaware Bankruptcy Court visiting Justice Randolph Baxter refused Laser Haas new CLI counsel from speaking after Randolph Baxter allowed the parties to reschedule the CLI claims hearing, allowed CLI counsel to withdraw and did forbid the new counsel for speaking the very day Baxter did strike and expunge CLI and HAAS Court approved Senior Priority Admin claim for more than $3 million.

    Then Haas appealed.

    Then, speciously, after being silent for more than 6 months after TBF confessed to paying Barry Gold. The Court did enter an OPINION that vindicates TBF, MNAT and Barry Gold as the Delaware Bankruptcy Court, going into the Twilight Zone, stated that now perjury had been documented. Despite the Fact that the US Trustee had already testified to the Court that the US Trustee had warned the parties against violating the law where TBF And MNAT have already confessed to filing more than 34 false affidavits.

    The Judge continued going off the deep end of logic with a 57 page Opinion that refused to refer the $300 million in fraud and perjury to the US Attorney’s office as is required by the Judicial Canon’s of Conduct ( specifically 3(B)3 ) and 18 USC 3057(a). (please see OPINION by Judge Mary F Walrath Here )

    This is just as well, we suppose, with the newly discovered evidence that the US Attorney in Delaware, Colm F Connolly, was a partner with the MNAT law firm in 2001.  Referring the matter to Colm Connolly office then did not matter as Laser Haas had been informing the Delaware US Attorney, specifically Asst US Attorney Ellen Slights and Deb for quite some time.

    Now with the newly discovered evidence that Colm F Connolly was a partner at the MNAT law firm in 2001, when the fraud and perjury began (Please see Dept of Justice notice HERE )

    Wherefore, Laser Haas realized a long time ago that the rule of Law was non existent in Delaware, as even the 3rd Circuit has stated that the Federal Rules of Appellate Procedure does not apply to Delaware Bankruptcy Cases (please see 3rd Circuit per curiam Opinion Here ) Where it says on page 7 that the Federal Rules of Appellate Procedure does not apply to this instant case.

    Why even both with the mockery.

    Just issue a nationwide Memo, all matter of Haas v eToys are prejudged against HAAS, QED!

    Despite that readily apparent efforts of cronyism, to protect the Banrkuptcy Ring of Delaware, Haas did file a Citizens Complaint with the California US Attorney’s office Tom O’Brien.

    Please see Citizens Complaint HERE

    We were supposed to receive an answer from the US Attorney’s office of Tom O’Brien this week, the answer seems to have come in another form of message as the L A Times reported that last week Tom O’Brien did disband and dismantle the Public Fraud and Corruption Task Force.

    More importantly, Tom O’Brien apparently threatened his own Asst US Attorney’s that if they revealed any other reason why the Task Force was disbanded, including bad mouthing their boss, that the Asst US Attorney’s would pay a penalty.

    You can see the actual threat in the L A Times Store HERE

     Upon receiving that news, Laser Haas began calling all the Asst US Attorney’s he could to get a comment.

    No comment has been given, However, the Asst US Attorney’s did refer the matter “officially” to the FBI and the FBI did intake the information and has passed the case up the proverbial ladder within.

    May it be that the FBI is really true blue and patriotic enough not to be corrupted by the Delaware and Washington DC corruption of Organized Crime referred to by Congress as a Bankruptcy Ring.

    We will try to keep you informed.

    DOJ efforts to cover up MNAT perjury and Fraud now receives national attention

    March 5, 2008 1 comment

    UPDATE Aug 31, 2011

    WARNING – there are rogue elements within the Dept of Justice – seeking to subvert the Constitution of the United States for veiled agendas sake – contrary to Congressional Law!  During his tenure at the Delaware Department of Justice, US Attorney Colm Connolly’s office repeatedly declined to investigate and prosecute the MNAT law firm.

    http://www.MNAT.com

     MNAT had made many confessions to perpetration of intentional deception of the Delaware Federal Bankruptcy Court by the MNAT law firm.

    HOWEVER – a serious Conflict of Interest Ethics violations was committed.

      Colm Connolly failed to disclose the fact that he was a partner at the MNAT law firm in 2001 – the very year the MNAT perpetrated many civil & criminal code violations – including Perjury, Collusion, Scheme to Fix Fees, SEC violations, Intimidation of Victim/Witnesses, Conspiracy, False Oaths/Declarations, Perjury and Racketeering violate of California, New York and Delaware state/ federal cases.

    Please see Colm Connolly’s Resume from the Department of Justice

    http://www.justice.gov/archive/olp/colmconnollyresume.htm

     
    An Organized Criminal element maintains control over the  Federal Bankruptcy Courts are the rogue parties within the DOJ US Trustee’s Office.

    There are only 21 Police – the US Trustee’s -

    in charge of all 1.5 million on average bankruptcy filings each year.

    But there are 338 Bankruptcy Judges (here)

         More than 100 felony violations occurred with confessions to 34 false affidavits (Perjury) that accomplished admitted premeditated Fraud on the Court.

         Granting the criminals willful blindness allowed Marc Dreier, Tom Petters, Larry Reynolds and others to accomplish an additional $ 4 Billion dollars in fraud.

    Cover UPs of MNAT & their clients

     Goldman Sachs & Bain Organized Crimes


    __________________________________________________________________

       Currently the present US Trustee’s Office is

    THE Most sophisticated group of white collar criminal activity in the United States.

    Our tax paid Police – the 21 US Trustee’s handle over $500 Billion dollars annually.

    There is no other arm of the Dept of Justice that handles so much money with absolutely no oversight whatsoever!

    http://www.petters-fraud.com/DOJ_Cover_UP.html 

    When the MNAT law firm and the Traub Bonacquist & Fox law firm Confessed to supplication of more than 34 False Affidavits and Deliberately deceiving the Court – the DE Dept of Justice Trial Attorney – Mark Kenney – gave Traub’s firm a Stipulation to Settle that granted Paul Traub’s firm UNlawful, implied, blanket, immunity and the promise of the DE DEpt of Justice US Trustee’s office (the Police of the Bankruptcy Court) gift to Traub of future willful blindness by the US Trustee’s office.

    http://petters-fraud.com/US_Trustee_Motion_Feb24_2005_2giveTBF_immunity.pdf

    You must scroll down the PDF to the WHEREAS clauses proffered by the Dept of Justice Trial Attorney.

    UPDATE  Dec 19 2008

    Some day soon, the DE US Attorney, Colm F Connolly, will have to explain why he declined to investigate or prosecute his former firm (MNAT) and partners for their participation into the $300 million dollar fraud in eToys and the 34 acts of perjury (MNAT confessed to supplication of 15 false affidavits to the Federal Court in DE).

    Then again, maybe not – who knows how deep the corruption goes.

    The one thing we do know for sure, documented by the Court Docket record of eToys docket item 2201 – is that instead of prosecuting the TBF law firm for confessing to deliberately deceiving the court through more than 17 false affidavits – the Dept of Injustice gave the TBF law firm Unlawful, implied, blanket, immunity.

    Then Traub committed another $100 million fraud endeavor in the KB Toys case and the DE DOJ obstructed justice by having the evidence striken and expunged (See KB Toys bankruptcy DE 04-10120 docket item 2228 therein)

    Since then, Paul Traub’s two other partners have been accused, arrested and are being held without bail for more than $2.3 billion in fraud. Tom Petters for $2 Billion, Marc Dreier for $300 million ( a separate $300 million from eToys)

    http://www.petters-fraud.com/DOJ_Cover_UP.html

    What are the odds, had the Federal authorities investigated and prosecuted Traub in the beginning, that Dreier and Petters would not have reached to the level of criminality they are documented to have accomplished?

    We may never know!

    The Law firm of Morris Nichols Arsht & Tunnel (MNAT) has confessed to filing multiple, false, Rule 2014 and Rule 2016 affidavits, in order to be paid millions in fees in the eToys case.

    .MNAT was the Court approved counsel for the Debtor of eToys.  Traub Bonacquist & Fox (TBF) was the court approved counsel for the creditors of eToys.

    Barry Gold was the “wind down coordinator” , then President, CEO and now Plan Administrator of eToys.

    .The Law firm of TBF also confessed to filing multiple, false, affidavits to the federal court in eToys.

    Today we focus on the issue that has gained national attention recently, as can be seen at the WSJ Law Blog here

    Where the Wall Street Journal noted that the Wilmington Journal had begun to review the serious issue that Congress is intent upon looking into Delaware Courts bias decisions that disfavor the public shareholders and bless Executive or inner circle elite.  ( to see the Wilmington Journal article here  )

    What is at stake is Delaware’s dominance of corporation filings that has blossomed into a Delaware bankruptcy Courts and attorney bonanza at the expense of the public at large by rulings contrary to Congressional mandates and common decency.

    It was not my desire to be at odds with rogue personnel within the Dept of Justice. (at least we hope they are a rogue element and not the norm).  Nor was it my desire to pick upon powerful, esteemed elites of MNAT, TBF or US Attorney Colm F Connolly.

    To the contrary, my desire is that this all go away with proper remedy. 

    I did not seek their incarceration or demise, however, they cannot steal from a company I was sworn to protect, whether they take away my right to be paid or not, the fiduciary duty Remains!

    It is their arrogance and belief that they are Above the Law, that shall either assure their success in the criminality or assure their demise.

    However, they, MNAT, TBF, Barry Gold and the rogue personnel within the Justice Dept, choose little ole me (actually I am a big person :0)  ) as the enemy worthy of their disdain and efforts for destruction.

    My own attorney, Henry Heiman, a former Trustee in Delaware, after I had been offered inducements, warnings and more, where Heiman, feeling no worries, due to the “good ole boys” network in Delaware, Heiman emailed me a threat from Susan Balaschak of TBF.  That if I did not back off, not only would HAAS and CLI not be paid, my career would end and they would come after me.

    My response was to blow the whistle.  While many said I should have found a way to take the $800,000 bribe and adapt my views.  Be the silly person I am, I reported the bribes and threats to the Dept of Justice.

    This blowing the whistle, initially, resulted in confessions.  TBF and MNAT confessed to filing multiple, false, affidavits to the Courts. (more than 35, to be exact).

    TBF confessed that Barry Gold was his paid associate, that TBF had paid Barry Gold four (4) separate payments of $30,000 each.

    TBF, MNAT and Barry Gold also confessed that they drafted a Barry Gold Hiring Letter.

    The Hiring Letter contains language that rewards Barry Gold if he does not apply to the Bankruptcy Court for persmission to be hired.

    The reason the parties drafted the clandestine Hiring Letter (the letter remained hidden until Jan 25 2005 even though it was signed in June 2001) where MNAT, TBF  were warned by the US Trustee’s office not to violate Section 327(a) of the Bankruptcy Code. (the US Trustee testified to this in the Motion to Disgorge TBF for $1.6 million on Feb 15, 2005, eToys docket item 2195) as they were warned not to do a crime, the only chance they had, to get away with crimes, that were already ongoing, was to seize control of the entire estate.  The Hiring Letter would have guaranteed their success, if they had not chosen to stiff HAAS and CLI just because they had the power to do so.

    The issue at hand for Delaware Courts, MNAT and the US Attorney, Colm F Connolly. Is that, despite the confessions, the Disgorge Motion and Stipulation to Settle, never, Ever, mentions MNAT. This testifies, as prima facie evidence, being an actus reus act in and of its own existence, to the very fact that MNAT is enjoying a spirit of no prosecution.

    The Stipulation to Settle is an ILLEGAL document,

        where the Dept of Justice in Delaware, apparently in an effort to protect MNAT, has given TBF improper, Illegal, permission to Circumvent the Code. This implies that willful circumvention of a Code or Rule, a crime in any sense of the word, has become systemic in Delaware.

    The exact words in the Stipulation to Settle, flagrantly defy the Code/Rule of Law and the Dept of Justice’s fiduciary duty to the public and the courts.

    WHEREAS The United States Trustee shall not seek to compel TBF to make additional disclosures

    Every counsel in the world can tell you they would LOVE for such a clause to be legal. In essence that clause and setting the precedent that such is permitted, single handedly, wipes out the statutes and intent of Congress.

    We do not have to prove anything else in this case, that clause, documents, by the Dept of Justice own signature, the intent to willfully circumvent the Code.

    In re Middleton Arms Ltd Partnership  934 F.2d 723 (6th Cir 1991) has been affirmed by the US Supreme Ct and the 3rd Circuit.  “courts cannot disregared the clear and “unambiguous” mandate of Section 327(a)”.

    When any non disclosure of conflict of interest is discovered, after the fact, the Courts must disqualify.  Not is not even within the authority of a Federal Justice to Circumvent the Law.  Because that is called, in any public citizens realm, Breaking the LAW!

    Bonds, Martha and Clemens are citizens who made a false statement and all are paying through the nose for such self protection efforts.

    MNAT, TBF, Barry Gold, Colm Connolly, Mark Kenney, Roberta DeAngelis, Kelly B Stapleton, Andrew Vara and anyone else in this case are “officers of the court” and thereby are held to a higher standard.   They are given their esteemed levels of trust and above average pay days, due to the fact that they are required and swear an oath to be of the highest integrity.

    When they violate that level of trust, the crimes or heinousness of the highest kind. Again, it is their arrogance and Abuse of power that is the testimony of their character.  I am just the messenger.

    Now Colm F Connolly is nominated to be a Delaware District Court Judge. Where Connolly’s resume became public information. By revealing that Colm F Connolly was a partner at MNAT in 2001, many ethical questions are automatically obvious.

    Why has Colm F Connolly’s office refused to investigate MNAT?

    Why has Colm F Connolly failed to refer the MNAT matter to the Public Integrity Section as is required by Dept of Justice protocol when the US Attorney has any connection, whatsoever, to an issue?

    Did Colm F Connolly assign a case number to the issue, as the protocol of the Dept of Justice mandates, when more than one hour of time is expended on an issue?

    MNAT, TBF and Barry Gold are utilizing the Stipulation to Settle permission to circumvent the law to keep quiet about the MOST important issue. Barry Gold, TBF and MNAT all have “undisclosed” connections to Bain/KB Toys.

    MNAT, TBF and Barry Gold all negotiated the sale of most of eToys assets to Bain/KB.  This is Collusion to Defraud an estate.

    It breaches their fiduciary duties to their respective clients, it breaches their Oaths, Declarations and Affidavits to the Court and violates Model Rules of Condcut, SarOx, SEC Regulations, Delaware State Corporate Law and many other platforms.

    It is THE most serious betrayal of trust that can occur.  For MNAT, TBF and Barry Gold “sold out their client for their own benefit”.

    Colm F Connolly, Mark Kenney, Roberta DeAngelis, Kelly Stapleton, Andrew Vara and everyone else knows the LAW and their fiduciary duties are to the public and the Constitution.

    We do not have to prove the benefit that the Dept of Justice personnel received in their efforts of nolle prosequi (refusal to prosecute).

    The failure to prosecute obvious criminal acts and the overt manner that the Justice Dept has engaged upon, in order to defend the criminality and punish this whistle blower, speaks for itself.

    It is plain dumb, to continue this charade any further. It is obvious that they have reached the end of their power center. If they desire to mitigate their own demise, it would be wise to effort a honorable remedy now, to demonstrate good faith.

    All their calls to the WSJ to shut down my statements had to send a message that things are heating up.

    Senator Biden was informed of this stuff for years. He is at risk also.

    They are the ones who choose to go all or nothing, when they already had it all, they could have given back a little, to everyone and made this issue go away. 

    Instead, they used their power and influence with the Dept of Justice and the Delaware Courts, going TOO FAR!

    They have stolen a public company and even if you toss out Bankruptcy Code and Rules, by Delaware’s own Corporate Laws, the sale of eToys.com assets is rescindable, as it fails the “bona fide” requisite.

    The push, the hard push, to make Colm Connolly a Judge, is that he then, cannot be removed, unless he is impeached.

    If Delaware wants cronyism as the main character trait within its Systems, it will get what it asks for!

    However, the fact remains is that this is multiple cases, multiple years, multiple parties, multiple states, involving hundreds of millions of dollars. All being done contrary to the Law.

    If this was a powder substance instead of the stroke of a pen, it is obviously Racketeering.  Because they are doing such by abuse of power and you have yet to see a body in the streets, some are inclined to permit the leniency. 

    It is obvious however, that those that desire leniency are not the ones who lost their money in eToys.

    When the RICO efforts involve those the country pays salaries of $100,000 or more per year, to defend us from racketeers, then you do not have the law, you have anarchy and cronyism.

    Concise statement of the criminality and DOJ efforts to cover up!

    February 11, 2008 Leave a comment

    Justice Dept  rogue personnel cover up $300 million in fraud and 40 acts of perjury!

    The Law firms of TBF and MNAT have confessed to supplying the Delaware Federal Courts with more  false affidavits concerning non-disclosure of conflict issues! (Though they are coy about it being 40 acts).

    The United States Attorney resource manual stipulates that US Trustees are appointed to police bankruptcy Courts under 28 U.S.C. § 581. They are obligated to report criminal offenses and assist prosecutions by 18 U.S.C. § 3057(a); 28 U.S.C. § 586(a)(3)(F). Such is a mandate, not discretionary.

    Although the statute requires DOJ to police and prosecute mendacity, the Justice Dept personnel in Delaware are staunchly refusing to prosecute inner circle elite law firms and the US Attorney in Delaware has failed to disclose his connection to the MNAT law firm. While the courts are willfully blind.

    This criminality is compounded by the fact that the US Trustee has reported in the Motion to Disgorge TBF $1.6 million, that the US Trustee office warned the parties against violating the non-disclosure and conflict of interest laws in the eToys bankruptcy case. This demonstrates the quest/intent to do immoral.

    Despite the authoritative warning, TBF and MNAT conspired to place Barry Gold within eToys without disclosing that he was a paid associate of TBF.  MNAT and TBF drafted a clandestine Hiring Letter that rewarded Barry Gold if he choose not to seek the Court’s approval of his hiring.  At which time he became President and CEO of eToys.  This is willful, conspired, circumvention of the Court and Code.

    At the same time MNAT, TBF and Barry Gold negotiated the Sale of eToys assets — for discounts in the tens of millions — to their regular client Bain, as Bain owned KB Toys this was collusion to defraud

    Inexplicably the attorney for the new US Trustee voided the Disgorge Motion of TBF  by the Asst US Trustee giving implied, blanket immunity, while permitting TBF permission to circumvent the Law.

    All Senators and Congressmen should be aghast as we complained to the EOUST in Washington DC, he resigned and the Asst US Trustee who drafted the Disgorge Motion resigned as well.

    The list of crimes that the Stipulation seeks to cover up include:

    Ø                  Perjury, as 40 separate false affidavits were “intentionally” supplied to the CourtØ                  Scheme to Fix Fee’s as TBF caused eToys to pay Barry Gold instead of TBFØ                  Collusion to defraud the Estate as MNAT, TBF & Gold sold eToys to their client BainØ                  Intimidation of Victim/Witness as TBF and others warn the whistle blower to “back off”Ø                  Obstruction of Justice as TBF, MNAT and Gold submitted a false document to defraudØ                  Willful circumvention of Code or Rule as MNAT, TBF and Gold signed the Hiring LetterØ                  Failure to declare $2 million in cash deposits by Exec VP of eToysØ                  Vote rigging of the Plan of eToys by non-disclosure of claims acquisition by insiders Ø                  Misprison of a Felony, as all law firms refused to report the malfeasance to the CourtsØ                  Breach of Fiduciary duties, as all firms are busy defending each other, at harm to clientsØ                  Racketeering as this involves several cases, several states, several years and many firms

    As morose as the aforementioned acts are, the germane issue of great consequence is that the parties are so entrenched in their ability to corrupt the system. Key personnel of the Dept of Justice, the SEC and US Attorneys office have resigned rather than fight the inexplicable, power and influence.

    The criminality remains overwhelmingly readily apparent and irrefutable as Court docket records. Even the Chairman of the Creditors Committee has supplied affidavits of the deceits. The amount of willful blindness and overt complicity by theDOJ in the refusal to prosecute has made the Justice Dept complicit in organized crime. The US Trustee is not only refusing to officially refer the matter for prosecution, the DOJ is utilizing Taxpayer dollars as an appellee, aligned with the fraudulent parities asking the courts to expunge[defraud] the whistle blower!  Mocking justice “ad hoc”! 

    Senators, Congressmen, Counsels and US Government agencies should be aghast at the shere audacity and boldness of the Delaware Federal Court and Justice Dept personnel who would dare abuse the due process and assault our Constitution in such a flagrant manner mocking justice.  As the recent Circuit Court opinion stated that the Fed R App Proc do not apply to our case.  If the courts can throw out the Law openly, what is going on behind closed doors. http://www.ca3.uscourts.gov/opinarch/072360np.pdf

    This remains an issue of national importance, we thank the entities of www.wjfa.net/bk/etoys.html
    www.fraudonthecourt.blogspot.com  www.bankruptcymisconduct.com and www.craig-morford.com for assisting the efforts to be concise and efforts to fax (daily) the issues to Congressmen , US Attorneys and persons of interest and accomplishment in efforts to halt the anarchy that seeks to devour our system of justice as its own personal vault to fleece America!

    Additional details can be seen at our other blogs such as http://fraud-corruption-mnat.townhall.com/default.aspx

    ———–Laser Steven Haas

    Criminal acts exposed

    December 28, 2007 1 comment

    I.      STATEMENT OF JURISDICTION 

                1.            Quoting the US Trustee in their response to Robert Alber’s initial brief, this appeal involves a core proceeding (as defined in 28 U.S.C. § 157(b)(2)) arising under title 11 of the United States Code, over which the United States Bankruptcy Court for the District of Delaware had jurisdiction pursuant to 28 U .S.C. § 157(b)(1). The United States District Court for the District of Delaware had jurisdiction over Appellant Robert K. Alber’s appeal from the bankruptcy court’s October 4, 2005 order pursuant to 28 U. S.C. § 158(a)(l), as it was an appeal from a final order of the bankruptcy court. Mr. Alber timely filed a notice of appeal of the district court’s February 27, 2007 final order dismissing his appeal to the district court. Accordingly, this Court has jurisdiction over Mr. Alber’s appeal pursuant to 28 U.S.C. § 158(d).  This Writ also states such as well as various other, serious issues, that make the instant appeal a matter that this honorable body needs to address at the request of this “pro se” petitioner Steven Haas (“Haas”), the Court approved liquidation company sole owner whom the bankruptcy Court also gave standing[1] to.

     II            Extraordinary Circumstances dictating the need for Writ of Mandamus 

                2.            This Emergency Motion seeks a Writ of Mandamus that may be utilized when the system refuses to address matters of recusal or comply with unambiguous statutory mandates of disqualification. Fraud is continuous, even today, in eToys and the authorities thus far have engaged in staunch acts of  nolle prosequi”.  A Writ of Mandamus[2] is “drastic remedy that a court should grant only in extraordinary circumstances in response to an act amounting to a judicial usurpation of power” (In re: Mwanze, 242 F.3d 521, 524 (3d Cir. 2001)). This court has jurisdiction and is about to make a decision in the eToys case that is germane to Emergency[3] issues and this Court should be informed of the facts documented below to avoid any further wasting of the Court’s efforts of justice.  It is imperative to inform the Court that serious criminal “defensive” posturing is occurring in a possible effort to pervert justice for the benefit of “unclean hands”. They are doing preemptive efforts to thwart the appeal outcome Jan 2nd.

                3.            This Circuit has addressed the issue of “bankruptcy rings” before. (In re Arkansas Co., 798 F.2d 645 (3rd Cir. 08/13/1986)). This Circuit remarked upon the fabric of the stabs to clean up errant efforts, after the fact, to circumvent the Code, concerning offending applications of § 327(a) and Rule 2014 affidavits. This Circuit remarked;

                “[W]e reject the notion that a complete and thorough post-application review may substitute for prior approval in most cases. This approach would render meaningless the structure of the Bankruptcy Code and Rules, which contain provisions requiring both prior approval of employment and after the fact approval of compensation. 11 U.S.C. §§ 327(a), 1103(a), 330; Bankruptcy Rules 2014(a), 2016, 2017”. 

                4.            It is undisputed that errant, false Rule 2014 affidavits[4] have occurred. This instant appeal originates from disputing the US Trustee signing of a Stipulation as the Court refused to disqualify parties who admitted mendacity.  The illegality being readily apparent as the Court and US Trustee seek judicial usurpation of powers by the Court approving an illegitimate clemency clause;

                 WHEREAS, the United States Trustee shall not seek to compel TBF to make additional disclosures

                5.            There is no legal basis for the Bankruptcy Court to use such “clause” as a qualitative or quantitative measure of “judicial usurpation” of the integrity of the judicial process. Chiefly important, manifest injustice is continuous, within the jurisdiction of this Circuit by willful blindness, “pretense” and “color of law”, benefiting a “bankruptcy ring” that is becoming incestuous organized crime within the Delaware court system.

                6.            The Matter of Arkansas was concerning a much less ruthless effort, being a “nunc pro tunc” employment, yet this Circuit felt it necessary to remark upon Cronyism and “bankruptcy rings” in the Arkansas matter to send a clear message and warning that the Circuit was aware of such nefarious possibilities, so that those that would engage in any efforts of end runs around the law and the Court’s auspice would think twice.  Where this Circuit specifically remarked;

                It is significant that Congress chose to place the requirement of court approval for the employment of an attorney, accountant, or other professional by the creditors committee directly in the Bankruptcy Code in 1978. 11 U.S.C. § 1103(a). The legislative history makes clear that the 1978 Code was designed to eliminate the abuses and detrimental practices that had been found to prevail. Among such practices was the cronyism of the “bankruptcy ring” and attorney control of bankruptcy cases. In fact, the House Report noted that “in practice . . . the bankruptcy system operates more for the benefit of attorneys than for the benefit of creditors.” H.R. No. 595, 95th Cong., 2d Sess. 92, reprinted in 1978 U.S. Code Cong. & Ad. News 5963, 6053”  

                7.            On Dec. 14, 2007, this Circuit scheduled the mattes for Trial on January 2, 2008. Then on Dec. 18, 2007 a motion by the “planted” party of Barry Gold[5] who has implied he will, or has, withdrawn as CEO/ Plan Administrator occurred. The perpetrators and Mr. Gold are seeking payment of legal defense funds, at the same time the KB Toys case[6] (which owes the eToys Debtor tens and maybe hundreds of millions) is rushing to a close, while the NY Supreme Court trial of tens of millions remains in serious question of fraudulent peril. 

                8.            The Asst US Trustee testified to the fact that the parties sought permission concerning placing a connected party in as sole bankruptcy authority.  Despite the warning the counsel for the Creditors and for the Debtor placed a connected party in as a “wind-down coordinator” (Barry Gold), who has been the Plan Administrator since November 2002 till present.  Now the parties seek to maintain control by ruse[7] in replacing Mr. Gold.

                9.            While this movant does not desire to interrupt the current proceeding that is scheduled for January 2, 2008.  Such may be necessary, at least for a few days, to give opposing parties the chance to respond. The fact remaining is the US Trustee and the other appellee’s have refused to give this movant [Haas] proper notice, repeatedly, even after being forewarned[8] against such malevolent behavior.  The perpetrators are in total, nefarious control of the estate, within and throughout, seeking to maintain safe control.

                10.            It is a fact, not in contention, that the Creditor and Debtor’s counsel have confessed to supplying, multiple false Rule 2014 affidavits to the bankruptcy court[9]. The counsels submitted monthly items to the Court and have provided over 19 false affidavits. Including two (2) false testimonies by the Plan Administrator.  Yet, despite Court docket proofs of this perjury, the US Trustee and the bankruptcy court have stated no perjury has been documented being contradictory to its own Opinion[10] while approving the US Trustee’s clause.  Once one confesses of perjury nothing they say has value or verity.

                11.            This instant appeal also concerns the issue that no disentitlement has occurred as the bankruptcy court went on the record in the Opinion of October 4, 2005 refusing to disqualify,[11] also refusing to refer the matter to the US Attorney’s office. Now the parties seek to pull a fast one on the Circuit’s authority by replacing the Plan Administrator with a party hand picked to assure the continued success of their schemes.

     III        Issues presented 

                12.            In the current debate of whether the district court abused its discretion in dismissing Mr. ALBER’s appeal under Poulis, multiple parties requested to amend the appeal concerning Steven Haas (a/k/a Laser) (hereafter referred to as “Haas”) and the parties sought also to amend the appeal headings concerning Kelly B Stapleton. MNAT law firm has specifically named Haas specifically in the MNAT cross appeal[12] of 05-831.

                13.            This Court denied requests to amend parties, yet the parties of the US Trustee and various appellee’s have refused to serve “proper” notice to party Haas.  Haas notified the appellee’s, when Haas sent out the Haas response brief in this instant appeal, warning the appellee’s not to ignore Haas, or any other parties of interest[13]. That setback now presented, Haas also brings to this Court these other issues as well, for review,

    a.                  Does Haas have standing as person aggrieved and/or appellee

    b.                  Must the parties give notice to Haas and abstain from bad faith

    c.                  Under Fed. Rules of Evidence – Judicial Notice 201[14]

    1.                  Was Barry Gold required to apply per § 327(a)

    2.                  Is the US Trustee Stipulation to Settle circumvent of 327(a) valid

    3.                  Did the Bankr. Court errs in stating no perjury occurred.

    4.                  Did the Bankr. Court err in stating no disqualification

    5.                  Did the Bankr. Court err in refusing to refer to the US Attorney

    6.                  Did the Bankr. Court err in denying Haas standing

    7.                  Did the Dist Court err in dismissing Robert Alber under Poulis

    8.                  Will this Court void Barry Gold, ab initio, per 327(a) or Plan 5.2

    9.                  Was the Ordered response of January 25, 2005 a total come clean

    10.              Will this Court rule that “fraud on the court” has occurred, intentionally and make official referral to the US Attorney office

    d.                  Can this Court order that Haas or CLI be Plan Administrator in place of the voided Barry Gold, for the sake of rectifying fraud & the Plan protection[15].

    e.                  Due to the abundant skullduggery overwhelming documented; will this Court maintain authoritative watch over the case or Order a change of venue to assure integrity of the judicial process, including the “extraordinary” method of “Quo Warranto” as this criminal conspiracy warrants.

    f.                    Will this Court take notice that the Plan has extraordinary circumstances that exists that the Debtor’s estate can be made whole by a comfort order

     IV      This brief is submitted by Oath “under penalty of perjury”.

               

                14.            These facts are brought to you this day, by Steven Haas (a/k/a Laser Haas) (hereafter referred to as “Haas”). Whereby I, Steven Haas, this 26rh day of December 2007,  under penalty of perjury” testify to all items above as well as the following items below;

                15.            Accordingly the questions that we pose to you, or any reader of this criminal saga, shall simply be, – do you mind?  Does one mind that officers supplied the court with sworn affidavits that were false, intentionally? Does one mind that the Dept of Justice has chosen to crush a whistle-blower while defending the perpetrators of fraud instead of protecting the public’s trust as they are sworn to do[16]?  Are you incensed by the fact that the Court itself, sought to be lenient on behalf of well-established colleagues[17]?

                16.            Is it upsetting to know the bankruptcy court’s leniency is complicit in defrauding creditors and whistle-blowers[18]?  Can anyone sit inactive while our system of justice, the US Trustee’s bureau and US Attorney’s office engage in a cover up that seeks to keep every authority from knowing that their acquaintances are involved in a plot of $300 million in fraud?  Where the “police” of the Courts are defending versus arresting malfeasance as a “syndicate” has reared its ugly head and dares anyone to question why!

                17.            They have given implied, blanket, immunity to their well-established colleagues!  Is this mockery of justice to continue? Can we stop people who state, with legal fraud, that they are Above the Law? Can we stop Organized Crime in our Courts?

    V            Background and Statement of the War of Fraud

     A simple desire to destroy books n records and the next thing $300 million disappears. 

                18.            One is bound to be astonished, and cynical, at the same time. The amount of subterfuge in the eToys saga makes it necessary to present this chronicle in a manner that will cure the doubter within. Haas is “pro se” after having hired eight different counsels, (even though the Debtor’s estate is contractually obligated[19] to provide defense), where all counsels refused, despite 18 USC § 4 MisPrison and 18 USC § 3057(a), firmly declining to report fraud on the court, by officers of the court, to any authority. As a result Haas and CLI was an abandoned client and was forced to become “pro se”.

                19.       It is a moral & legal imperative that verification of the facts occurs. (To assure the purity of the System of Justice). Self-dealings, being illegal, are profuse[20]. They are enjoying the qualm that such cannot be, taking advantage of the unwillingness to hear.

                20.            It is necessary to review the three key court docket items,[21] the US Trustee and Bankruptcy Court provided, which will substantiate the actual criminality and a give anyone all the tangible evidence needed to know something is seriously wrong.

                21.            The firm of Morris Nichols Arsht & Tunnel (MNAT) was the Court approved counsel for the eToys bankruptcy case in Delaware (Bankr.# 01-706) (the “Debtor”). The firm of Traub Bonacquist & Fox (TBF) was the Court approved counsel for the Official Committee of Unsecured Creditors in eToys.  The firm of Collateral Logistics, Inc., (CLI) was the Court approved, “sole” liquidation consultant of the Debtor. (Haas is the 100% sole owner of CLI). Robert Alber is an eToys public equity shareholder. The Post Effective Date Committee (the “PEDC”) is the court approved Plan committee.

                22.            Abundant proofs of vast felony violations, including $300 million in fraud & voluminous acts of perjury (several acts already confessed[22]), have already been documented by the Bankruptcy Court[23].  The lawful authority[24] of the system has become void and rogue parties of the system making efforts to cover up an OOPS are now caught!

                23.            The management team that had originally formed eToys and went public in 1999 decides to file bankruptcy in 2000 and then declared that they were going to vacate the estate. The Court approved an Order to destroy[25]books n records” (D.I. 300) after the eToys Debtor filed bankruptcy around March 7, 2001, leaving a void by a paperless trail.

                24.            Thus you have an uncanny situation where the Court should appoint a US Trustee; in opposition, Delaware is notorious for its disinclination to do so. Paul Traub the founder of Traub Bonacquist & Fox, as counsel for the creditors, being an opportunist, seized upon this perfect scenario as a pioneer of coarse ways to take advantage of the bankruptcy system. All the evidence of Court docket records demonstrates that TBF continuously became more brazen and flagrant[26] in disregard of § 327 and Rule 2014.

                25.            The fact is they (TBF & MNAT) admitted to acts of filing false Rule 2014 affidavits in eToys[27], stating, in a cheeky[28] manner, that it was inadvertent. While fiendishly the truth is they admitted to a small amount of illegal acts, as they continuously remain silent about $300 million in fraud. They are also unfettered in major threats of retaliation, obstruction of justice and racketeering because of implied immunity[29].

                26.            The Asst US Trustee originally responded with a Motion to Disgorge[30] TBF.  Which was then inexplicably followed by a Stipulation to Settle, by Mark Kenney (the attorney for the US Trustee). Additional fraud occurred in the KB Toys case, in March 2005, that Haas whistled upon, as TBF had threatened Haas to “back off” or CLI would not get paid and that Haas and/or CLI would suffer additional retaliations[31].

                27.            The eToys Bankruptcy Court then retaliated, expunging and dismissing Haas & CLI, wiping out CLI/ Haas’s Senior priority admin claim for $3 million. That Haas did appeal in September 2005. The bankruptcy court then issued an Opinion and corresponding Order that approved the Stipulation to Settle on October 4, 2005. 

                28.            Haas and Robert Alber immediately appealed this approval, while MNAT also cross-appealed.  Multiple appeals, petitions for rehearing, including requests for en banc rehearing occurred, that were all dismissed without adjudication upon the merits of Haas, CLI issues or proper review of the matter of Fraud on the Court. (Many by Judge Kent A Jordan[32] which demands recusal under §455 and additional appeal rehearing). 

                29.            Subsequently the most recent appeal currently being reviewed by this Court, as the Dist. Ct. used the extreme of a prejudicial Poulis Std., to dismiss Robert Alber, where the dismissal by Poulis, to be utilized last, is in debate as the Judge used it as a first.

                30.            Everyone, including more than four (4) parties from the US Trustee’s office have submitted briefs, response briefs and letters to this Third Circuit Court seeking to expunge Haas and Robert Alber, while the Justice Dept has refused to prosecute the case[33].

                31.            The lack of action by the Dept. of Justice parties, (that have breached their fiduciary duties),  are thereby forcing the question[34] of “Quo Warranto”! As the scheming parties of TBF, MNAT & Barry Gold can only succeed by ploy and plot, with the blind eyes of the police (US Trustee), as they are now conniving to replace the position of Plan Administrator with another of “their” own and  justice dictates that this cannot be allowed.

     VI.        The 3 court documents that prove the intent to do a Cover Up 

                32.            The proof of perjury and fraud is the Asst US Trustee’s Motion to Disgorge TBF for $1.6 million[35]. (The Disgorge Motion) (D.I. 2195 in eToys Bankr) (Feb. 15 2005).

                33.            The Asst US Trustee did not seek the mandatory disqualification, required by law and falsely concluded that a “planted” party by the Creditors attorney (Barry Gold) (a “wind down coordinator”) was kosher, being opposite to the Code mandates.

                34.            This false premise of stating Barry Gold was not required to apply per § 327(a) is a requisite in order to hoodwink inquiries[36] and to defeat Haas and Alber.

                35.            The Disgorge Motion occurred because Haas proved and Alber joined Haas regarding “undisclosed” conflict of interest existing between TBF and Barry Gold (as well as many other items of non-disclosure).     

                36.            Then, less than 10 days later, on Feb 24, 2005, the Dept of Justice attorney, Mark Kenney, made that Disgorge Motion void impiously. Mark Kenney supplied a Stipulation to Settle, (D.I. 2201) to give new leniencies to TBF as it concluded that TBF only would pay $750,000 sanction for TBF’s transgressions, with abatement of disclosure.

                37.            This act to Settle can only be described as subversion to an oath of office. 

                38.            Finally, the third document, that pulls the wool over the eyes of the public, is the Bankruptcy Court’s Opinion[37] of October 4, 2005 (D.I. 2319). That had a corresponding Order attached (D.I. 2320).  Despite the fact that Paul Traub of TBF confessed[38] to the Court, in a March 1, 2005 hearing to multiple statutory violations, the court refused to disqualify or refer for prosecution. Even after TBF admits it paid Barry Gold four (4) payments of $30,000 each prior to TBF placing Barry Gold, in a clandestine manner, as the bankruptcy Court clearly errs in remarking no wrongdoing occurred.

                39.            The Opinion headed off Haas’s appeal stating the Court finds the no criminal acts occurred. (A statement made in comfort as everyone keeps striking and expunging Haas). Then the Court also remarked, in a flagrant manner of Mark Kenney’s Stipulation to Settle, that it refused to refer[39] the matter to the US Attorney’s office[40].

     VII        The Dept of Justice warned TBF not to violate Section 327(a) and 101(14)

                40.            Congress was aware that undisclosed conflicts are dangerous, which was affirmed by this Circuit, concerning the bankruptcy realm[41].  Therefore the Laws of 101(14)definition of disinterested person”, Code 327(a)Employment of Professional Persons” and the affidavit requisite, to confirm that a court approved professional is in compliance, Rule 2014, was formed to assure judicial as well as professional integrity. The Asst US Trustee Disgorge Motion stated that he [fore] warned the parties[42]. (D.I. 2169 ¶19 & ¶35). Yet the Disgorge Motion and bankruptcy Court Orders refuse to disqualify.

                41.            Despite an authoritative instruction against an obvious unlawful act, the parties nefariously conspired to commandeer control of the estate. Whereby both the Debtor and Creditor’s counsel (MNAT & TBF) drafted a clandestine Hiring Letter[43] (D.I. 2169) to place a connected party (Barry Gold of TBF) within eToys as the “sole” bankruptcy authority of the estate. They simply kept one exec on the payroll, to assure an appearance of a Debtor, (David Gatto) even though they were in essence, void of a client. The Hiring Letter documents duplication of CLI approved work by Barry Gold, who was a “wind down coordinator[44]” (an effort to flip flop on what duties he was performing).

    VIII       Dept of Justice refuses to prosecute confessed perjury and obvious fraud

                42.            As the Asst Trustee remarked upon in the Disgorge Motion, the US Trustee is charged with overseeing Chapter 11 cases within the Delaware Judicial District in accordance with 28 U.S.C. § 586. The US Trustee’s office was designed by Congress to protect the system and public from “bankruptcy rings” and cronyism.  The US Trustee is the “policing” authority of Chapter 11 bankruptcy matters as the Disgorge Motion pointed out in referencing Morgenstern v. Revco D.S., Inc. (In re Revco D.S., Inc.), 898, F.2d 498, 500 (6 th Cir. 1990) (describing the US Trustee’s office as a “watchdog”).

                43.            When we shouted and screamed to all the authorities concerning the profuse frauds, the Delaware US Attorney, Mr. Colm Connolly’s staff failed to tell us then (3 years ago) that Mr. Connolly was a partner with MNAT in 2001, when the bulk of the offenses occurred. (It is perceptible that any honorable review of the facts, will kismet many). 

     IX    Trustee warned them not to do wrong as Fraud begins with a Hiring Letter 

                44.            The Hiring Letter was submitted into the record, three years after it was drafted, along with their confessions to false affidavits. (D.I. 2169) as many false items are verified by the Disgorge Motion (D.I. 2195[45]).  The exact verbiage of the Hiring Letter circumvention of the Code by offers, states the following;

     you shall retain such position – (i) the approval of your employment as an officer by Order of the U.S. Bankruptcy Court”–

    That was then made invalid by a bold, willful, circumvention and inducement –

    –you have waived the condition in clause(i) you shall be appointed as President and Chief Executive Officer of the Company –

               

                45.            At such time Barry Gold was then paid $40,000 per month (for two days work every two weeks) and a promise of a bonus at the end of the case if he chooses willfully to evade the auspice of the Court. (The letter was a scheme by TBF & MNAT).

                46.            So restrictive is the statutory requisite on disqualification it is beyond the flexible powers of a Federal judge to circumvent the mandate, as is confirmed by In re Middleton Arms, Ltd. Partnership , 934 F.2d 723 (6th Cir. 1991). This Circuit has affirmed that disqualification is a Code mandate when non-disclosure violations occurs.

                47.            The failure of counsels to not independently review disbursed million dollar preferential cash transfer items, is a crime. (In re Bucyrus 94-20786 (E D Wisc.) Matter of Gellene, Milbank & Tweed, Gellene imprisoned for perjury, total disgorgement of Milbank as they lost a $30 million lawsuit as a result of one instance of perjury to cover up a loan).

                48.            Allowing the parties who engaged in subterfuge to keep their $14 million in semi -approved fees in eToys is the least of the criminal acts that has occurred in this saga. The US Trustee attorney, Mark Kenney now allows the parties to keep control of the vault of eToys, which the parties have seized nefariously by duping the Court’s through perjury.

     X         The efforts of deny Haas standing are preemptory efforts to conceal Fraud 

                49.            The Debtor was scheduled to hold an auction to sell the bulk of eToys assets to several parties in March 2001 for $5 million.  Haas efforts helped the estate to accumulate over $45 million for liquidation assets. Instead of being appropriately compensated for such triumph, CLI is being punished as the good faith sale efforts - harmed the scheme to sell the assets to connected parties. TBF, MNAT & Barry Gold are all hiding, under the guise of immunity from disclosing clause; of their relationship to Bain that acquired the eToys assets. They are all also connected to Bain’s Liquidity Solutions[46].

                50.            MNAT, TBF and Barry Gold (TBF’s direct paid associate) refused to compensate Haas or CLI at the end of 2001 and entered a document into the record, (purportedly on behalf of CLI), entitled the HAAS Affidavit in November 2001. The Certificate of Service document proves that MNAT did not give notice to Haas and CLI[47]. 51.            The parties had collectively discouraged Haas from seeking independent counsel for CLI; (as a cost saving benefit to the estate). The Court approved the Order that stated the paperwork of CLI would be supplied to the Court with the “assistance of Debtor’s counsel” while waiving Rule 2016.  This is corroborated by the Court Orders approving CLI (D.I 253 & 523) and the multiple affidavits of the Chairman of the Creditors Committee. So every time the scheming parties mention that CLI failed to file paperwork, they are testifying against their own failure to perform a fiduciary duty. 

                52.            The Chairman also testified within multiple affidavits[48], to the fact that MNAT, TBF and Barry Gold deceived the Chairman when TBF and MNAT placed Mr. Gold in as eToys “wind-down coordinator”. At all times Barry Gold was supplied by TBF, Traub stated Mr. Gold was as an “arms length” entity, unconnected to anyone, as another court approved, Xroads LLC submitted a bill stating[49], “ awaiting court approval of Gold”.

                53.            When the eToys shareholders questioned Mr. Gold about his TBF connections in a hearing on the Plan confirmation (transcript D.I. 1394).  Mr. Gold denied[50] connections to TBF while on the stand and many in the room, (including the Dept of Justice), knew the statement was false at that time. Mr. Gold cemented the ruse by a Plan Declaration – Affidavit, where Barry Gold falsely stated, perjuring himself, that all the negotiations were done by “good faith” “arms length” parties (D.I. 1312) (Gold &TBF).

     XI        HAAS always had counsel until the Court expunged CLI in retaliation 

                54.            From the time of the Haas Affidavit, once the defiant parties established goals in unethical behavior, until August 2005, Haas had engaged more than 8 counsels for CLI.  All of who refused, despite the duty mandated under 18 USC § 4 MisPrison, to report the acts of non-disclosure of conflict of interest to the Court or US Trustee. During the August 2005 hearing where the Bankruptcy Court expunged the CLI and Haas Senior priority Admin claims, His Honor Baxter refused a new counsel from speaking (Transcript D.I. 2322) where Haas had to go out of the Delaware system and seek new counsel to put in a  pro hac vice” as Judge Baxter made all counsel efforts moot expunging CLI claims.

                55.       Haas had informed, continuously, Mark Kenney, (the Dept. of Justice, Wilmington DE, attorney for the Region 3 U.S. Trustee’s office), of the issues at hand.  The responses by Mr. Kenney[51] were always dismissive until one day, in a fit of irritation; Mark Kenney did a “lapse linguae” as Mark Kenney stated that the conflict of interest issues of TBF & Barry Gold was resolved in the Bonus Sales case(DE Bankr 03-12284).

                56.            Researching how one case could cross collaterally solve the issues in another case led to the discovery of the Bonus Sales proof that inadvertently brought down their house of deceptive cards. Bonus Sales and the similar case of In re Homelife 01-2412 both had addressed the issues of TBF, Barry Gold their entity ADA and ineligibility due to conflicts of interest. TBF, Gold and Fleet Bank had already been addressed multiple times by the US Trustee. Fleet Bank remains a non-disclosed issue, even to this day, in the eToys matter by TBF and Barry Gold, along with many other “hidden” issues of the parties.

    XII.      The perpetrators are permitted retaliation as the Court expunges Haas

                57.            Enigmatically the Dept of Justice personnel, the perpetrators, and the Court’s, have stated that Haas does not have permission to bring the issues of Fraud on the Court to the attention of the Court. The haughtiness to infer that one needs permission to point out fraud is disgraceful! This illegitimate denial of Article III standing is disingenuous, having no basis in statutory Law. The ardent horde does take advantage of loopholes or ambiguity. (A policeman can refuse to halt a robbery, if your money is ??)

                58.            It is only through this “color of law” that the parties are able to dodge prosecution by denying Haas or CLI standing. This is despite the fact that the Court did approve the CLI contracts, which state the eToys Debtor is directly responsible for all labor and expense “to be paid for by eToys” (eToys D.I 253 & 523).  Thus the nine (9) months of labor by Haas for eToys gives pecuniary interest. As well as Code 503(b) Substantial Contribution, if for no other contribution than that which has resulted in the disgorgement of $750,000 that TBF has agreed to pay. Courts are required to give adjudication upon the merits of  § 503(b)[52]. It is reprehensible unfairness, the worst manifest injustice that one could perpetrate, to punish a whistle-blower, while parties gain by collusion and perjury –(thus far there has been no equitable justice in the eToys case)!

                59.            MNAT, TBF and Barry Gold, did connive to persuade Haas, parties of interest and the Creditors, to “trust them” where they persuaded Haas not to obtain independent counsel for CLI as a cost saving measure to the estate, beguiling everyone. It is extremely specious that the only item that MNAT, TBF or Barry Gold supplied to the Court is the HAAS Affidavit of November 2001, which the parties falsely state it is a waiver.  Who believes anyone would work a year and then say don’t pay for the good faith work? Why would anyone fight for something given away? Rule 2016 let off is specious!

                60.            A court cannot tender rewards to conflicted attorneys[53], who have gained unjust enrichment, with admitted “unclean hands”, while the integrity of the court has been intentionally defiled.  Any equitable justice has become a vacant notion in Delaware fraud.

    XIII    Asst US Trustee Frank Perch states that Fraud on the Court was intentional 

                61.            As a result of finding Court docket (Bonus Sales) irrefutable proof of an ongoing, non-disclosed, relationship between TBF and Barry Gold, Haas placed such information into the Court docket record in the fall of 2004. After requests for an Emergency hearing the following acts occurred,

    1.                  Two members of Goldman Sachs sat on the board of RR Donnelley while Donnelley voted on eToys/Sachs an issue, (including the $300 million lawsuit of the Debtor in NY Supreme Ct against Goldman Sachs) RR Donnelley and Goldman Sachs divested themselves of each other in Dec. 2004.

    2.                  Lawrence Friedman the Director of the Dept of Justice EOUST office replaced the Region 3 Trustee; Roberta DeAngelis with Kelly B Stapleton and a DOJ UST press release was issued on December 22, 2004[54].

    3.                  An Emergency hearing to address the non-disclosure/conflict issues occurred on December 22, 2004. At which time the Asst US Trustee stated to the Court it was apparent that non-disclosures occurred, (Transcript docket item 2151)

    4.                  The Court Ordered responses to the allegations to occur by Jan 25, 2005.

    5.                  The confessions to the non-disclosure occurred in the responses, also during a Feb 1, 2005 hearing and confessions during depositions taken per court approval on Feb. 9, 2005. (Transcript of February 1, 2005 docket item 2191).

    6.                  The court rescheduled February 4, 2005 trial, for the CLI and Haas claims.

    7.                  Asst US Trustee Frank Perch was to travel on Feb. 16, 2005 and informed the Court he would make the US Trustee’s position on the issues known prior to.

    8.                  On Feb 15, 2005 the Disgorge Motion of TBF for $1.6 million occurred.

    9.                  The Disgorge Motion Feb. 15 2005 (D.I. 2195) stated that                   a.      The US Trustee had [fore] warned the retained professionals against replacing key personnel of the debtor with anyone connected to TBFb.      That therefore the acts were deliberate, rather than inadvertent.c.      There was material adverse harm.d.      That the [diametric] lines between debtor and creditor were destroyed.e.      TBF was vastly experienced bankruptcy attorney in national casesf.       Fraud on the Court had occurred.g.      To disgorge anything less than $1.6 million of the $3.5 million TBF had acknowledged receiving – would lack deterrent value

    h.      The Disgorge Motion erroneously stated Barry Gold did not have to apply as a “post-petition” “wind-down” coordinator [per 327(a)]

    10.              Less than 10 days later Mark Kenney issued a Stipulation to Settle (D.I. 2201) containing the illegitimate clause “shall not seek to compel – disclosure

    11.              Speciously neither the Disgorge Motion nor the Stipulation to Settle mentions MNAT. The crimes of MNAT non-disclosure issues are vastly understated.

    12.              On March 1, 2005 a hearing was conducted where Paul Traub of TBF confessed to the Court that he placed Barry Gold within the Debtor after TBF had paid Barry Gold four (4) payments of $30,000 each. (D.I. 2228)

    13.              We investigate why the “no seek to compel” clause was necessary and find an additional $100 million fraud item in KB Toys which Mark Kenney obstructs justice of when he asks the courts to expunge our proof . (KB Toys D.I. 2228)

    14.              We inform Frank Perch and Director Lawrence Friedman of the additional $100 million in Fraud[55] and Frank Perch, along with Lawrence Friedman resign[56].

    15.              The Court retaliates by rescheduling CLI trial date, expunges CLI, refuses CLI new counsel and denies Haas standing as “person aggrieved”.

    XIV      A double-minded US Trustee’s office proffers immunity for intentional fraud

    62.            The Stipulation to Settle (D.I. 2201) went way beyond Frank Perch’s initial efforts of leniency with the improper permission to circumvent the Code.

                63            This effort by Mark Kenney ignores the Law. As well as it smears the US Trustee’s office by breach of fiduciary duty to protect the Courts from malfeasance.  Here, we have extensive effort by TBF to abuse such an esteemed level of trust[57] flagrantly. With direct overt protective acts by the “policing” US Trustee on behalf of perjury and fraud.

    V       TBF confesses  to four (4) payments of $30,000 each to CEO of eToys

                64.            On March 1, 2005 a hearing was conducted where Paul Traub of TBF was under direct Court examination (Transcript D.I. 2228) while the Court ordered, that as Haas’s counsel refused to be present; Haas shall be denied standing per Article III. (one would think the Court should have Ordered Haas’s counsel to be present). 

                65.            Again, Haas must be silenced in order to hide the facts of their crimes.

                66.            During the March 1, hearing Paul Traub of TBF confessed to the fact, under direct Court examination, that TBF, as Creditor’s counsel paid Barry Gold four (4) separate payments of $30,000 each, prior to placing Barry Gold secretly within the Debtor.  Yet the Court and US Trustee totally disregard this issue and the Hiring Letter furtively!

                67.            These acts of perjury and fraud are made extensively heinous, as the Asst US Trustee Frank Perch testified, in the Disgorge Motion of warnings (¶ 19 & ¶35).

                68.            The Justice Dept and the Court are defending the perpetrators. Is it any wonder why Haas and CLI cannot find a lawyer?  Anyone with common sense can see that the Law is now not being applied.  Speaking to over 1323 firms and attorneys all said no.

    XVI       Dept of Justice persons is acting as defense counsel for perpetrators

                69.            Further investigations by Haas and the eToys shareholders led to the discovery by Haas that TBF and MNAT had ongoing relationships with Bain/KB Toys. The significance being that MNAT, TBF and Barry Gold negotiated the sale of the Debtor’s assets to Bain/KB Toys for discounts in the tens of millions.

                70.            As morose as that is, TBF further compounded their nefarious acts by petitioning the KB Toys court for the right to prosecute the $100 million cash that Bain and Michael Glazer had paid themselves pre petition.  At which time Mark Kenney engaged in his 3rd overt act to obstruct justice by asking the KB Toys Court (successfully) to strike and expunge Haas (KB Toys # 04-10120)(D.I.2228).     

                71.            The US Trustee office has persistently aligned themselves with the perpetrators as an appellee asking the Courts to expunge Haas and the eToys shareholders.

     XVI       Haas own counsel forwards threats by TBF to “back off” or else 

                72.            Previously Haas attorney, Henry Heiman had passed on a threat by TBF’s Susan Balaschak, doing so by email[58].  Whereupon TBF warned Haas that if he did not “back off” not only would CLI and Haas not be paid for the work, Haas’s career would suffer greatly and additional retaliations would occur.

                73.            The outcome speaks for itself, as probability and result, where the court threw away Haas and CLI without any proper review upon quantum meruit! XVII      A pre-petition loan of $40 million  and over $100 million fraud continues. 

                74.            Haas also discovered that TBF and Barry Gold also had an ongoing undisclosed relationship with Wells Fargo/Foothill Capital.  An entity which loaned the Debtor $40 million in November 2000 and transacted over $120 million[59] in withdrawals prior to the March 7, 2001 bankruptcy petition filing (again see In re Bucyrus 94-20786  - Gellene/ prison – The case of Bucyrus is exactly on point with eToys fraud).

                75.            Haas discovered overseas-undeclared cash deposits in excess of $2 million.  (The Court stated it had no authority over international cash deposits). More assets are hidden by the conspired petition of the court for destruction of books and records in the very beginning of the case (approval D.I. 300).

    XVIII     Contacting authorities results in Obstructive run-arounds by DOJ personnel

                76.            The Court remarked that it had warned Haas against any further notices to the Court and had also warned of sanctions on July 26, 2005[60]. 

                77.            Haas had also contacted the OIG, the OGE, the OPR and the FBI (especially after physical threats occurred.) Also informing the Public Integrity Section and Pres Bush Corp Fraud Task Force, all of which referred Haas and the eToys shareholders back to the General Counsel (currently Roberta DeAngelis) of the EOUST office in Washington D.C and the US Attorney in Delaware. 

                78.            Roberta DeAngelis in violation of protocol and ethics is now in charge of reviewing her own cases.  The Opinion and Order were also immediately appealed and denied due to the US Trustee aligning themselves with TBF & MNAT . 

                79.            Referring items to the US Attorney’s office has had similar results. As the US Attorney in Delaware has now been nominated for the position of Delaware District Court Judge, his resume became public, upon which it is now discovered that Colm F Connolly was a partner with the MNAT law firm in 2001, when the fraud and perjury began.  Not appointing an independent prosecutor is a disgraceful ethics violation.

                80.            The Opinion and corresponding Order of October 4, 2005 aids the readily apparent efforts to cover up as it is a 57-page testimony vindicating the parties with off-point remarks on ADA.. The Opinion also stated, errantly, that Barry Gold was not required to apply per § 327(a). (They fraud needs this deceitful concept maintained). The Court and US Trustee simply ignored a Dec. 1, 2005 Motion to Recuse under Rule 5004 and a Motion to Review Failure to Act by US Trustee under Rule 2020.

     XIX    The US Trustee is extensively instructed and knows the Law has been broken 

                81.            Multiple appeals have been filed and there is now this appeal in the Third Circuit appeal (case# 07-2360).  The US Trustee’s office is acting as an appellee with TBF, MNAT and Barry Gold defending the right to proffer the illegitimate settlement and immunity clause.  Even the new Asst US Trustee Vara has joined violates his own actions.

                82.            The new Asst Trustee Vara handled the case of In re Cold Metal 02-43619 (E D Ohio Bankr 2002) where Trustee Andrew Vara addressed, extensively, the on-point issue of  § 327(a) as the brief signed by Trustee Vara cited the accurate case of Stahl v Bartley Lindsay Co. (In re Bartley Co.,) 137 B.R. 305, 309 (D. Minn. 1991) stating “financial advisor or workout consultant is considered a professional subject to retention”. (Barry Gold was required to apply and even Asst US Trustee is aware of it).

                83.            At the same time former Region 3 Trustee Roberta DeAngelis, in a report to the Subcommittee on Commercial and Administrative Law” which was to the Committee on the Judiciary cited cases demonstrative of Her and the US Trustee’s office detailed knowledge of Barry Gold scenarios, as DeAngelis quoted In re: Harnischfeger, case 99-02171 (Bankr. D. Del. 1999) The US Trustee [successfully] moved to disqualify the [financial advisor] firm for failure to disclose.

                84.            Mr. Gold is guilty of participating in the conspiracy to deceive the Creditors by participating in the Hiring Letters and his false testimony on the stand and the Plan Declaration. While there is also abundant “prima facie” evidence that the acts of perjury, etc., were “deliberate, rather than inadvertent” (D.I. 2195 ¶19). 

    XX.   Barry Gold 327(a) issue is a deception under the “color of law” false premise.

                 85.            The whole illegitimate premise of no prosecution is based upon the specious seed of pretense that Barry Gold was not required to apply per § 327(a). Such “color of law” pretense is a fallacy as Mr. GOLD complies with the factors to determine whether an entity to be employed by a debtor is a professional within the meaning of 327(a). In re Martin 817 F 2d 175 180 (1st Cir. 1987) addressing both the “unclean hands” doctrine and listing the 12 factors to consider in application of who must apply and disclose by 327(a)[61]. In re Kraft v Aetna 43 B.R. 119 Bankr. Ct. Dec (MD Tenn 1984) ([Trustee] cannot bypass 327(a) by stating mechanical services.) All Circuits have adopted “autonomy” as the key.            86.            The US Trustee is instructed from the onset, by a Handbook & Guidelines which can be found online at the US Trustee’s website under the heading “Significant Guidance Documents” (please see Handbook[62]). All evidence aptly demonstrates the extensive knowledge they have on the issue at hand concerning Barry Gold per § 327(a). Having such vast experience and expertise in the matter, one must therefore conclude that they know their fiduciary obligations and choose to do otherwise. Why, who knows?             XXI.        Summary of criminal acts that have been confessed

                `1.            It is undisputed that TBF placed Barry Gold in as “wind-down coordinator 

                            of the Debtor without disclosure. (D.I. 2195 ¶17)

    2.                  TBF has confessed to multiple false affidavits including TBF’s intentionally overt act permitting the false affidavits to stand, even after Traub and Michael Fox discussed the issue that their relationship became apparent (publicly visible) in the Bonus Sales case, yet they surreptitiously choose to remain silent demonstrating “mens rea”. (D.I. 2195 ¶18).

    3.                  It is a fact that MNAT has confessed to supplying multiple false affidavits, which is Perjury. (While MNAT has failed to totally “come clean” on other false items such as Bain and Mattel). TBF alone submitted over 15 pledges.

    4.                  Barry Gold supplied additional “actus reus” items by the clandestine Hiring Letter (D.I. 2169), which contains the illegitimate clause that bribed Mr. Gold if he would intentionally choose not to apply to the Court [§ 327(a)]           

    5.                  Barry Gold “scienter” is documented by the perjury, on the stand, when questioned by Alber about undisclosed connections to TBF (D.I. 1394)

    6.                  Barry Gold “actus reus” act of committing perjury was also the Plan Declaration/Affidavit, which stated that the Plan was negotiated in “arms length” negotiations between Debtor and Creditor’s. (Perjury as Mr. Gold is testifying “arms length” Between Barry Gold and TBF)(D.I. 1312).

    7.                  A Rule 2014/2016 certification is required every time a fee application is submitted. More than a twenty such fee applications were submitted by TBF, MNAT & others knowledgeable about non-disclosure acts, these acts also compound the perjury violations. Where even the Scheme to Fix Fee statute (18 USC 155) while being a misdemeanor in nature, has become a format of a conspiracy felony when both the Debtor and Creditor’s counsel conspire to draft the Hiring Letter to circumvent the court & the Code. (It is absurd how MNAT refuses to state which partner did the drafting).

    8.                  Asst US Trustee Frank Perch also testified in the Disgorge Motion that TBF had discussed the issue, prior to doing the bad faith act, of anyone replacing key personnel of the Debtor with persons connected to retained lawyers in the case. (D.I. 2195 ¶19 &¶35). This is sufficient “scienter” requisite. 

    9.                  The Asst US Trustee documented additional “bad faith” acts of complicity when TBF sought to handle the conflicted issue of Goldman Sachs because MNAT was also non-disclosed. Whereby TBF compounded the original acts of “non-disclosure” by a supplemental affidavit, affirmatively misrepresenting TBF had no “conflict of interest” issues (D.I. 2195 ¶17).

    10.              The parties committed the crime of Intimidation of Victim/Witness when TBF warned Haas to “back off”, or else Haas would see how high TBF was “connected”. MNAT has done similar efforts against Robert Abler nefariously in working with a party that sued Alber in many instances. 

    XXII.  Dept of Justice breaches duty as it is not permitted discretion to give immunity

               

                87.            The US Trustee is the “watchdog[63] for public equity entities per the Janet Reno Reform Act of 1994. When the policing entity turns against the public’s trust and engages in acts that defy statutory requisites, betraying Oaths of office, for the sake of felons, the whole system collapses and anarchy becomes the controlling factor.

                 88.            The duty to Notify and Refer criminal acts is statutory for US Trustee’s per 28 USC § 586(a)(3)(F) and 18 USC 3057(a).  So restrictive is the mandate to refer that the US Trustee’s Handbook & Guidelines state that if a US Trustee desires that no prosecution occur, a Memo of Declination must be sent with a history of the events to the US Attorneys office.  This was a Congressional mindset to protect against indecency; even a US Trustee is barred from any latitude of prosecution. The US Trustee cannot pic n choose whom to review for tribunal; it is the US Trustee’s job to report and let others decide.

     XXIII   Justice Dept personnel continue efforts to Cover up their fiduciary breach. 

                89.            Mark Kenney told this petitioner that a bribe or threat to “back off” was not a crime until the bribe was accepted or an act of documented harm had occurred (nice try)! 

                90.            TBF was assisted by Mark Kenney’s Motion to Strike and Expunge this whistle-blower (please see KB Toys case 04-10120 docket item 2228). (Taxpayers paying for the US Trustee’s office to defend criminal acts – now that is a real budget breaker).

                91.            Email notices have also been sent to Kelly B. Stapleton.  As the Region 3 Trustee that replaced Roberta DeAngelis the fact remains Stapleton’s electronic signature is upon all Trustee documents in the eToys matter since Feb. 2005. Including the erroneous Stipulation to Settle.

                92.            Roberta DeAngelis seeks to bring the full clout of the Washington DC office to the Third Circuit appeal, where she has signed her name to the brief, along with 3 other members of the United States Trustee Dept, to defeat “pro se” parties.

                93.            Spuriously the US Trustee is an appellee, hand in hand with the perpetrators, defending the right to proffer the illegitimate clause that circumvents § 327(a). While defrauding Haas/CLI with the efforts to improperly dismiss Haas

    XXIV.   It is a criminal conflict that theUS Attorney in DE was a partner at MNAT

                94.            Finally, the saga of the failure to prosecute can only be successful if a prosecutor, after being informed of the crimes, chooses to decline prosecution. Given the overwhelming amount of court docket evidence of perjury and fraud of MNAT, TBF and Barry Gold, the issue of selling the assets of one client (eToys) to their other “continuous” client (Bain) remains unaddressed. Begs the question, if Colm F Connolly handled the Bain/eToys/MNAT issue while he was a partner at the MNAT law firm?

     XXV  The criminal acts  the shameful “not seek to compel” clause desires to Cover-Up

               

                95.            Having been enraged by the audacity of the Dept. of Justice double-mindedness, where we were already upset that the Disgorge Motion erroneously stated in the very first footnote thereof, remarking that Barry Gold was not required to apply[64] [per § 327(a)]. Failing to seek the mandatory disqualification[65] of conflicted attorneys as required by Law. Even the CLI attorney at the time, Brad Brook said it was insulting and gave this petitioner the Norton books to see in black n white, case histories about requisites & Law.

                96.            It dawned on Haas that there must be something very important that would have one arm of the US Trustee’s office endeavor to go against another arm. What could be so important as to necessitate such a dichotomy?  The answer was found in research and the obvious, syndicated effort to protect ones cronies from additional, prosecution harm.

                97.            The US Trustee is instructed from the onset; by the Handbook & Guidelines[66], on who is required to apply as a professional person and how the US Trustee must protect the Court and public from such harms[67].  So many harms one is mind-boggled.  No principled person can dismiss without extensive review, the following items,

    1.                  The Debtor’s estate sold the bulk of eToys assets to Bain/KB Toys.  The $10 million was reduced to $3 million by TBF, MNAT and Barry Gold.

    2.                  TBF, MNAT and Barry Gold are connected to Bain. Bain and their affiliated owner(s) controlled Stage Stores/Liquidity Solutions Where TBF and Barry Gold was engaged, prior to and during eToys work. Michael Glazer, the CEO of KB was at Stage Stores. (Southern TX Bankr 00-35078)  

    3.                  Mitt Romney owns a lot of stock in Stage Stores at the time the offenses transpired. Toby Lenk the CEO of eToys vacated the Debtor and went to work for a Bain affiliated. We now have Dave Gatto’s resume of Bain.

    4.                  MNAT is also connected to Bain; MNAT brazenly represents Bain in the KB Toys bankruptcy case (as the cat is now out of the bag). MNAT was less than candid in its disclosure discussions about the Learning Company.  The Learning Company was a Bain, affiliated entity merging with Mattel. 

    5.                   While much has been discussed about the issue, the fact remains, though the Court and US Trustee have acknowledged reading the Hiring Letter, the criminality thereof has simply been ignored, TBF and Barry Gold are connected to Wells Fargo/Foothill Capital, Foothill loaned eToys $40 million in Nov 2000 and transacted over $100 million in cash transactions prior to eToys filing bankruptcy in March 2001.

    6.                  TBF, MNAT and Barry Gold were all working in the KB Toys bankruptcy the same time they are working in the eToys bankruptcy, which is contemptible. TBF petitioned the KB Toys court to be the one to prosecute the $100 million cash pre petition transfer to Bain/Michael Glazer. 

    7.                  When we notified the Court, Mark Kenney motioned to strike us, instead of prosecuting the crime.

    8.                  MNAT, Barry Gold, Ellen Gordon of Xroads and TBF refused to engage in purchase discussions with parties that sought to acquire the public entity of eToys. This is an SEC violation of the highest order. 

    9.                  The parties also refused to assist the shareholders to have an equity committee, which compounds the crimes when a sale is not sought by collusive efforts to gain sizeable control of the estate.

    10.              Xroads also had non-disclosed connections to Wells Fargo. 

    11.              TBF and Barry Gold have undisclosed connections to Fleet and Merrill Lynch as well, huge causes of action and other matters of fiduciary duties.

    12.              TBF and Barry Gold also have non-disclosed connections to Goldman Sachs (In re: Cosmetics Plus).

    13.              CLI had a potential merger/acquisition of Playco International.  TBF and Barry Gold declined to consider the offer.  TBF did not disclose TBF was creditors counsel in Playco.

    14.              TBF did not disclose in eToys or Playco that TBF was connected to the secured lender Wells Fargo (Wells Fargo was involved in both Playco and eToys matters).

    15.              TBF did not disclose connections to Paragon Capital that was co-owned by OZER and Wells Fargo in Playco.

    16.               TBF was of revoked status in the state of NY for several years, until Alber informed the Courts. (The bankruptcy court acknowledge blue ink copy).

    17.              TBF, MNAT and Barry Gold handpicked the counsel of eToys and TBF is co counsel for the eToys lawsuit against Goldman Sachs (a $300 million dollar issue that the Supreme Ct of NY has permitted to go forward. (case # 601805/2002)).

    18.              Susan Balaschak has supplied a false affidavit within (D.I. 216) stating that TBF has informed the eToys case “parties of interests” of everything. Including the Creditor’s Committee.

    19.              Susan Balaschak has speciously offered Ellen Gordon of Xroads as a key witness of the fact.

    20.              TBF neglects to tell the NY Court that Scott Henkin of Fir Tree Value Fund already confessed to being part of the conspiracy to place Barry Gold in the Debtor, knowing that Barry Gold and TBF were connected.

    21.              Scott Henkin is guilty of conspiracy and seems to have been rewarded, as he is now a senior exec at D E Shaw who owns the “new” public entity of eToys.com on NASDQ (symbol KIDS).

    22.              At the same time the other Committee person that was assisting Haas to solve the eToys issues, (Jim Brown of Fisher Price), has been speciously removed from office.

    23.               TBF and Barry Gold entity ADA was formed by Nancy A Valente, who also works for Johnson & Johnson.  J&J acquired the assets of Babycenter.com from eToys pre petition, (purportedly for $10 million).

    24.              As a pre petition preferential the J&J issue is also a crime, even without the Valente issue, when not independently reviewed.

    25.              Stage Stores is co-debtor with Liquidity Solutions, Liquidity Solutions deceptively began to acquire the bulk of eToys claims, without disclosure after Barry Gold was placed on board eToys in mid 2001.  All claims therefore are equitable subordinates under Code § 510(c).

    26.              While at the same time the sale of the Debtor’s assets to Bain/KB having “undisclosed” connections to the counsels and CEO of eToys results in the sale of eToys.com failing the “bona fide” requisite of the Code. This makes all sales to Bain/KB rescindable as fraudulent transactions or equitable subordinates. Etoys.com is now public again on NASDQ as KIDS.

    XXVI  The acts of “nolle prosequi” seek to outclass the acts of perjury & Fraud

    98.            The US Trustee’s guidelines states the United States Trustees is instructed by 28 U.S.C. § 586(a)(3)(F). (In the same manner the court is instructed by 18 U.S.C. § 3057) The trustee must also (a) investigate the debtor’s financial affairs, 11 U.S.C. §§ 704(4), 1106(a)(3); (b) oppose discharge where appropriate, 11 U.S.C. §§ 704(6), 1202(b)(1), 1302(b)(1); and (c) furnish information concerning the estate as requested by party in interest, 11 U.S.C. § 704(7). (i.e. Books n Records to the Court approved CLI.)

    XXVII     Denial of standing is a criminal attempt to conceal fraud with no legal basis

                99.            Haas has sought, prior to this time, requests for Fed.R.Civ.Proc. 23.1Derivative rights of shareholders”, Fed.R.Civ.Proc Rule 24Right to Intervention” and Fed.R.Civ.Proc Rule 25Right to Substitution of Parties” because the Courts would inappropriately allow CLI’s counsels to abstain from the issue. Rule 23.1, 24 and 25 are even given validity in Bankruptcy Rules as 7023.1, 7024 and 7025 respectively.  The denial of Article III has no foundation in Law, it only benefits the “malum in se”!

                100.            Also Haas had the qualified right offered to anyone (even a janitor or person off the street) under §503(b) Substantial Contribution. No one can suitably argue that the US Supreme Ct would sustain that such latitude to restrict “due process” can be use as a tool to defeat a whistle-blowers efforts to halt manifest injustice of fraud on the court, by officers of the court, who commit willful perjury and intentional, schemed fraud!

                101.            Be that as it may, TBF, MNAT and Barry Gold, along with the US Trustee/Court’s have repeatedly denied Haas the ability to bring forth the proof of fraud.  Even if, arguendo, you allow such perverse logic some fundamental basis, the fact remains it is now discovered that what is occurring is the Court, US Trustee and the perpetrators are finding fault with the Debtor’s breach of a contractual fiduciary duty that the Court itself approved by the “indemnification” clauses that were drafted by MNAT, TBF, Irell & Manella & Barry Gold. The Indemnification clauses specifically provide that the Debtor is to DEFEND, indemnify and hold harmless CLI and Haas. Finding fault of no counsel is finding fault with the Debtor, as is stated in Amended CLI order, the clause verbatim;

    Indemnification.   The Debtors shall defend, indemnify and hold CLI and its affiliates, the officers, directors, agents and employees of each, harmless from and against any and all claims, suits, damages, losses, liabilities, obligations, fines, penalties, costs and expenses (whether based in tort, breach of contract, product liability or otherwise), including reasonable attorneys fees and expenses, arising out of or based on any loss of the Remaining Collateral other than any such loss arising from or in connection with CLI’s, its agents and/or employee’s negligence or intentional misconduct. 

                102.            Anyone can point out a crime. It is only for the benefit of criminals that one would deny any person the right of standing during issues or efforts to point out fraud.

                103.            It is established that “Fraud upon the Court” is a serious issue that the Circuits and the Supreme Court have established the “doctrine” of extended timing, which all seem to find their genesis in Hazel-Atlas Glass Co. v Hartford-Empire Co.,  322 U.S. 328 (1944) (“Hazel-Atlas”) where it has been established that an Order is made void “ab initio” as stated in the In the matter of Kenner v. Comm’r Of Internal Revenue, 387 F.2d 689, 691 (7th Circuit 1968) “a decision produced by fraud on the court is not in essence a decision at all and never becomes final.  This precedent has been affirmed by the Circuits and was also quoted by the Court (MFW) in the Opinion of October 4, 2005.  Yet, when it concerns Haas, the Court simply ignores its own advice in the Opinion, including the statements that “extra-ordinary” circumstances exist where the Court said “that to hold otherwise [concerning TBF & MNAT] would only serve to punish [plaintiffs] and reward conflicting attorneys” (please see Opinion by Her Honor Walrath pg 16) (D.I. 2319).

    Conclusion and prayer for relief

                104.            So far any authoritative party must either face the discretion is better than valor pathway, by resignation, or; any public servant that remains is faced with an overwhelming hedge of power, influence and the blue wall of silence truism. Leaving one with a choice to rule against one’s esteemed colleagues or join in the deceit, (a dilemma to say the least)!  Extraordinary circumstance needs many “extraordinary” remedies.

                105.            We therefore seek honorable public servants who will refuse to stand idle while corruption; cronyism and criminal acts of a “bankruptcy ring” pervert the entire justice system so blatantly that it ensnares everyone who the government assigns to the case. We need the undeniable spirit that seeks Truth, Justice and the American way.

                106.            The recent Dist Ct. case in Michigan dealt with a similar refusal to classify fraud as Fraud upon the Court (please see matter of M.T.G. In re Matrix Tech Grp 95-48268). However, unlike the Matrix case, where the question of “intent” is in debate, this case does have concrete proof of intentional circumvention with the written collaborative Hiring Letter.  The case of Baron’s in Florida (S FL Dist Ct 07-60770) cited the eToys & Matrix issues, concerning Fraud on the Court – and Baron’s successfully reopened the closed case.  (It is amazing that other cases can accomplish remedies where the cited case is woefully lacking.)

                107.            The N Y case of the US Trustee Paul Banner v Cohen Estis and Assoc, cited eToys as a case precedent for the denial of all fee’s for non-disclosure. (The Balco/Estis case involved only 1 non-disclosure issue, where eToys has over 20 failures to disclose). To date there has been no adequate remedy in eToys, with sufficient deterrent, by proper disqualification and disgorgement, to conspired acts of willful, Fraud on the Court, accomplished via “officers of the Court”. It appears that the whole Delaware court system is in disarray and that no one in the system of justice has the fortitude to stand tall.

                108.            One should only have to point out the egregiousness of the “shall not compel” clause and that item alone should send a shockwave through the system of justice.  Anyone with any sense of decency should be aghast at the audacity of Mark Kenney and his cohorts. When a public servant betrays their oath of office and then engages in overt acts of obstruction contrary to ones fiduciary duties, against whistle-blowers, in order to cover up malfeasance by ones cronies. Such is instilling civil unrest by the destruction of the integrity of the judicial process for the sake of persons who consider themselves to be Above the Law.  This is overwhelming demonstrated! One need only look at the facts, which we have placed online, in affidavit form, for everyone to see[68].

                109.            I, Steven Haas, (a/k/a Laser) testifies to these statements, throughout this brief, under the “penalty of perjury”.  We said we would provide you with a few items of criminal, felony violations.  We have provided you with more than 30. Without going into the many, many more, such as Sarbanes Oxley, failure to disclose overseas cash assets, the SEC being instructed to refrain from making an official investigation occur. Every single time the court was told that CLI had waived all claims against the estate, was an act of perjury and collusion to defraud CLI and Haas. (Does anyone really believe that a person would wave $3 million in fees/commissions earned over 9 months?)

                110.            It is really a simple question.  Was the nomination of a new head of the Dept of Justice a real change toward restoring the integrity of the Justice Dept? Or, being that a Presidential hopeful, Mitt Romney, owned Bain, a potential future boss, will such cause the Justice Dept. to maintain the status quo?  

                111.            The parties of MNAT, TBF and Barry Gold have engaged in vote rigging, Plan rigging, perjury, fraud, deception and voluminous schemes that are as reprehensible as anyone can imagine.  They state the PEDC does this or that, when the fact is, they, the perpetrators of fraud, are the PEDC. (An independent counsel must review all the facts).

                112.            Thus far the system of justice has shown no integrity?  The evidence, the facts at hand, and the effort to remedy fraud in a manner befitting justice can only answer the question. Thus far in this eToys matter, it has been proven, that there is a double standard of justice. This case is the poster child to prove that there are those that there is a “bankruptcy ring” by those that are “Above the Law”. 

                113.            As stated originally, the issues presented are clearcut, as such we pray this Court utilize the Fed Rules of Evidence of Judicial Notice 201 and put a halt to the organized crime that seeks to corrupt the entire system.  Therefore we beseech that this Court state that Haas has standing as a “person aggrieved”.  That from this date forward the parties shall be sanctioned if the dare to effort to fail to notice Haas.

                114.            We feel it is readily apparent by every standard established within the Circuit that Barry Gold had to apply per § 327(a). It is also practical that a declaratory remark of the disdain of all efforts to circumvent the Code by the Stipulation to Settle occur. The Courts must halt all efforts to give implied immunity in the “not seek to compel” clause.  As the Court and US Trustee are errant in the finding of fact and conclusion of Law, which the Opinion of October 4, 2005 states that no perjury has been documented. Many disqualifications are therefore required.

                115.            We also pray this Court acknowledge that there is overwhelming documentation that warrants the disqualification of MNAT, TBF, Barry Gold, Frederick Rosner, Irell & Manella, Xroads LLC, Richard Cartoon, Scott Henkin and any other person, party or entity that had complicity in the intentional deceptions.  That all must disgorge, at a minimum, 100% of all fees and expenses.  That a comfort Order be given to permit proper Plan compliant causes of actions and pursuits. Including the remedies permitted due to the avoidable preference treatment afford KB/Bain acquisition of eToys assets. As well as the issues of equitable subordination of Liquidity Solutions, etc.

                116.            The Dist. Ct. was totally errant in dismissing Robert Alber by the Poulis Standard. As such this case is to be remanded to a Bankruptcy Judge to adjudicate properly the merits.(The shareholders should be granted an equity committee standing and counsel).

                117.            We especially pray this Court find that the original responses Ordered by the Bankruptcy Court for January 25, 2005 were to be a totally “come clean” affair. Lest the Courts send a message that officers of the court can continue deceptive practices due to the inability to ferret out all statutory violations that are continuously cloaked.

                118.            Given the abundant amount of skullduggery involved, we beseech this honorable body to maintain a heavier than average hand of authority to assure the integrity of the judicial process.  If such is not prudent due to the need to keep each Court separate in duties, may it please the court to either change venue to California (the physical presence of the Debtor) or, in the pursuit of equitable justice and good faith efforts of Plan compliance it is therefore necessary to appoint a special independent Justice, above reproach.

                119.            Especially given the abundant bias shown against Haas and CLI by multiple judicial parties.  As the recent case of Dickie Scruggs in Alabama demonstrates, it is sometimes necessary to recuse an entire Judicial body who would be faced with the dilemma of Ruling against a life long colleague.  Especially since Haas filed a Judicial Misconduct complaint against the Bankruptcy Court for the abundant acts of bias.

                120.            Being that the Bankruptcy Court has ignored review request concerning Books n Records, a Rule 2004 fishing expedition should be permitted by Haas and the shareholders, totally at the Debtor’s expense.  The Xroads LLC entity has been paid over a million dollars to handle the financial accounting of the Debtor and cannot state legitimately, that it will take time to detail all financial records.

                121.            The Bankruptcy Court also simply ignored the December 1, 2005 requests for Recusal under Rule 5004 and Review of Failure to Act by US Trustee under Rule 2020. Therefore it is necessary, combined with the abundant efforts that are contrary to the statutory mandates of the US Trustee, that “Quo Warranto” be considered to remove the parties of Mark Kenney, Roberta DeAngelis, Colm F Connolly, Kelly B Stapleton, Andrew Vara, Her Honor Mary F Walrath, His Honor Randolph Baxter, His Honor Donald Sullivan and His Honor Kent A Jordan from this case.  For most certainly we are parties with interest and extraordinary circumstances are already acknowledge, now being documented in abundance. Their honor is not a question, but their actions dictate a must.

                122.            Wherefore we ask that the Court make an official recommendation for a special US Attorney and prosecutor with official request for a statement from the SEC Bankruptcy Fraud Division whom Mark Kenney instructed not to send any official requests.  That the Court void Barry Gold, ab initio, as is provided in the Plan clause 5.2 for willful misconduct and gross negligence.  Barry Gold also had Plan clauses that forbade him from dealing with connected parties (clause 3.12). As such all payments, post-plan confirmation to MNAT, TBF, Frederick Rosner and/or any other connected issue, such as Bain, Liquidity Solutions, Richard Cartoon, etc. are void “ab initio”.

                123.            As the parties schemed to defraud Haas and CLI, where Barry Gold was muscled in to do the duties of CLI and Haas. (Wind down coordinator being the same thing as “sole” liquidation consultant), to place Haas in, nunc pro tunc, as CLI and Haas were Court approved complies with every thing that is decent and correct, including Plan Administrator as this is in compliance and duties as liquidation consultant, already going above and beyond the call to halt organized criminal efforts to fleece the estate. As the perpetrators are engaged in efforts, anticipating this Circuits rulings, where they shall seek to replace Barry Gold with one of their own “hand picked” parties under the guise that the PEDC is a purely, honorable, framework.  It is only prudent that the Courts do “extraordinary” remedies to assure the fraudulent acts do not continue.

                124.            The only parties that will object to the monies being returned to the estate, are those that took it and will lose it.  Barry Gold has now motioned for his legal defense fund to be paid by the Debtor and his motion infers that the PEDC, which was till this date, Barry Gold’s cronies, where Barry Gold hints, at the item Haas has known would come.  The perpetrators of fraud can protect themselves by hand picking the PEDC and new Plan Administrator parties. Which will in essence assure their success in the criminal efforts, by proxy. The NY Supreme Court case of ebc1, Inc (Debtor) vs Goldman Sachs and others, was also a TBF ploy and all parties thereto, hand picked by TBF are subject to scrutiny even if they are the promised child, due to the association with TBF and the failure thus far to point out the frauds to the NY Supreme Ct. (we have been emailing all parties). 

                125.            Susan Balaschak of TBF has falsely informed the NY Supreme Court that they have kept everyone informed and TBF seeks to offer the former Xroads LLC party Ellen Gordon as proof. Without disclosing to the NY Court all the issues prevalent and that Ellen Gordon is most likely no longer with Xroads LLC as Xroads LLC contacted Haas about the fraud, perjury and Xroads billing issue.

                126.            The KB Toys case, which owes this Debtor money and is rushing to close is a matter of tens to maybe hundreds of millions of dollars. The NY Case is a $300 million issue. Which at the barest of minimums needs a new independent counsel to review and that Court to be officially informed of the jeopardy of all rulings being void, ab initio, due to the fraud on the court that is ongoing.  A comfort order is highly warranted as this Debtor, with honorable Plan Administration, can become whole. Courts are required to act differently when a company can be made whole again.

                127.            We do not ask that the hearing scheduled for January 2, 2008 be delayed. We only ask that this Court permit Emergency relief, allowing shortened notice (email should suffice) and chance for reply, as an email notice is more good faith treatment, than those afforded Haas by the perpetrators who refuse to give notice to Haas.

                128.            We seek, Haas begs, for your conscience and nobility. Please agree to have valor against organized crime?  We do not even ask that you solve the CLI senior admin claim or Haas claims issue(s). (Though they have assisted in making this petitioner itinerant and bereft of career or funding). For we will gladly let those items stand on their own once the fraud issues have been properly pursued. 

                129.            It is not the eToys case or claims thereof that is the priority here. For Haas, CLI, eToys and even the defrauded shareholders is not an American quest. The issue here is key personnel at the Dept. of Justice would rather resign then force a remedy to occur, this should exasperate anyone with a conscience. If the Justice Dept personnel, the US Trustee’s attorney, can arbitrarily betray their Oath’s of office and design to defraud the entire integrity of the judicial process, for the sake of ill gotten gains & perverted acts of justice on behalf of esteemed friends as if no one cares anymore? (Anyone would be hard to find a case more reprehensible, with more fraudulent efforts, than eToys). 

                130.            We seek someone’s American spirit within.  The sense of goodness and righteousness that is intolerant to insidious acts of bad faith by those we assign with authority over us controlling the system of justice in our Federal Courts.  They can only get away with the schemes, which has stolen a public entity and corrupted our Dept of Justice nefariously, if we permit them free reign to do so.  As it has always been stated;

                All that is required for evil to prevail is that good people remain at rest

                 131.            For though it is our cookies that the attorneys and others have stolen, it is the American Jar of Justice whose lid was removed and tossed away for the benefit of those that have proven the Law has no authority over them.Prima facie evidence that a “bankruptcy ring” and Cronyism exists as this Circuit has already acknowledged such exists. (see Arkansas Supra). We pray the Court forgive our briefs length, our request for short notice and hope the Court is sympathetic to the plight of our pursuit for justice. On Feb. 25, 2005 the Director of the EOUST emailed us that we had his specific attention and that his staff will exercise appropriate judgment. The result was the Stipulation to Settle and then the resignation of the Director and Asst US Trustee. We hope and pray, that this Court has extensive resilience to go well beyond such exercises and judgments.

                 We humbly await the Court’s response.

                                                                            /s/ Steve Haas (a/k/a Laser)

                                                                            100% Sole owner of Collateral Logistics, Inc.

                                                                            CLI being the Court approved company

                                                                            Haas the Court approved employee of eToys


    [1] The bankruptcy court approved two contracts for Collateral Logistics (CLI) that also mandated a certain number of personnel be provided for by CLI to the Debtor estate at the direct expense to be paid by Debtor. The vast amount of arguments that Haas lacks standing are disingenuous as a ruse to cover up fraud.

    [2] TITLE 28 > Part V > CHAPTER 111 > § 1651

    (a) The Supreme Court and all courts established by Act of Congress may issue all writs necessary or appropriate in aid of their respective jurisdictions and agreeable to the usages and principals of Law.

    [3]A writ of Mandamus[3] will issue only in extraordinary circumstances  (See Sporck v. Peil, 759 F.2d 312, 314 (3d Cir. 1985)  (See remarks in Arkansas of In re Laurent Watch Co., 539 F.2d 1231, 1232 (9th Cir. 1976) (per curiam)

    [4] The US Trustee Motion to Disgorge and the bankruptcy Courts Opinion have affirmed false affidavits.

    [5] It is undisputed, actually “confessed” that the Creditor’s law firm Traub Bonacquist & Fox (TBF) did place a TBF paid associate within the Debtor as a “wind-down coordinator” doing such post-petition. As affirmed in both the US Trustee Disgorge Motion (D.I. 2195) & the Bankruptcy Court’s Opinion (D.I. 2319)

    [6] One of the non disclosures that remains ongoing is Barry Gold, the Debtor and Creditors counsel connections to Bain/KB Toys where the parties colluded and sold the assets of the eToys Debtor to Bain/KB for discounts in the tens of millions while the collaborative parties refused to seek public equity mergers.

    [7] The parties rigged the plan votes, control the Plan by negative notice and own many of the claims without disclosure of the facts. After already confessing to ignoring a warning by the US Trustee and doing misdeeds

    [8] When Haas sent the response to the Alber initial brief the email contained the specific warning for the parties to refrain from the continuous practice of not notifying Haas, which was patently ignored.

    [9] The Debtor and Creditor’s law firm have admitted to supplying, multiple, false affidavits to the Court. The Disgorge Motion, ¶19 and ¶35 stated the parties were [warned] while the Disgorge Motion proved intent ¶18

    [10] The Court also stated in the OPINION that exculpations would not apply “for acts constituting willful misconduct or gross negligence.” While Her Honor Walrath cited on such on page 12 & 13 of the OPINION in part 6 Exculpations; In re United Artists Theatre Co., 315 F.3d 217, 230 (3rd Cir. 2003); and In re PWS Holding Corp., 228 F.3d 224, 246 (3rd Cir. 2000) as there are more than 23 false affidavits willful is affirmed.

    [11] Where there is an actual conflict of interest, however, disqualification is mandatory. See  In re Marvel Entertainment Group, 140 F.3d at 476.) (emphasis added.) .  In re Middleton Arms, L.P., 934 F.2d 723, 724 (6th Cir. 1991) the Sixth Circuit found that the prohibition against disinterestedness was “unambiguous” and held that “[section] 327 prevents individual bankruptcy courts from having to make determinations as to the best interest of the debtors

    [12] The appeals of Del. Dist. Ct. of 05-830 and 05-831 are procedurally consolidated

    [13]  Haas received a belated mailing of the US Trustee’s response brief and appellant Robert Alber gave Haas a copy of the other appellee brief, remedies are required, as the parties, including the US Trustee endeavor to persuade this Court that Haas is a “non party”. Schemes to defraud will prevail without vigilance.

    [14]  Federal Rules of Evidence 201 re: ARTICLE II. JUDICIAL NOTICE – Rule 201. (a) Kinds of facts. A court may take judicial notice of a fact. A judicially noticed fact must be one not subject to reasonable dispute in that it is either (1) generally known within the territorial jurisdiction of the trial court or (2) capable of accurate and ready determination by resort to sources whose accuracy cannot reasonably be questioned.
        (b) Kinds of law. A court may take judicial notice of law. Law includes (1) the decisional, constitutional, and public statutory law, (2) rules of court, (3) regulations of governmental agencies, and (4) ordinances of municipalities and other governmental subdivisions of the United States or of any state, territory or other jurisdiction of the United States.

        (c) When discretionary. A court may take judicial notice, whether requested or not.
        (d) When mandatory. A court shall take judicial notice if requested by a party and supplied with the necessary information.
        (e) Opportunity to be heard. A party is entitled upon timely request to an opportunity to be heard as to the propriety of taking judicial notice and the tenor of the matter noticed. In the absence of prior notification, the request may be made after judicial notice has been taken
     

    [15] This request, while unusual is not improper. The bankruptcy Court originally approved Haas’s company, Collateral Logistics Inc (CLI) as the Court’s “sole” liquidation consultant.  The parties conspired to defeat the liquidation efforts by perjury and willful fraud on the court.  Haas has remained diligent in CLI duties. The position of “wind-down coordinator” and liquidation consultant or Plan Administrator are the same.

    [16] The US Trustee is commanded by Oath of office and 28 USC § 586(a)(3)(F) (and more) to halt the crimes.

    [17] It is highly plausible that the Opinion of the Bankruptcy Court of Oct 4, 2005 was influenced to vindicate.

    [18] The Court approved the Hiring of CLI and Haas; as a prudent matter of equitable justice it is appalling that the bankruptcy court would retaliate & deny adjudication upon merits of good faith, court approved work while refusing to address the issue of Fraud on the Court. Any Court must halt, rather than encourage Fraud.

    [19] The bankruptcy Court approved the Contracts for CLI and Haas that stated the paperwork of CLI would be submitted to the Court with the “assistance of Debtors counsel” [MNAT] and the Indemnification clauses of the two [2] bankruptcy court approved CLI contracts specifically state the Debtor shall defend Haas and CLI.

    [20] A debtor in possession is bound by a duty of loyalty that includes an obligation to refrain from self dealing, to avoid conflicts of interests and [even] the appearance of impropriety See e.g., Lopez-Stubbe v. Rodriguez-Estrada (In re San Jaun Hotel Corp.,) 847 F.2d 931, 950 (1st Cir. 1988); Bennitt v. Gremmill (In re Combined Metals Reduction Co.), 557 F.2d 179, 196-97 (9th Cir. 1977)

    [21]  The Fed R App Proc states that all parts of the original docket record are part of the Record. Therefore we ask that the Court review the US Trustee Motion to Disgorge Traub Bonacquist (D.I. 2195), the US Trustee Stipulation to Settle the Disgorge Motion (D.I. 2201) and the Opinion by the Bankruptcy Court (D.I. 2319)

    [22] The Opinion & Order of the Court already documents that MNAT, Barry Gold and TBF had conflict of interest issues. It skips by the fact that false affidavits are Perjury. The fact remains perjury is confessed.

    [23]  The Asst US Trustee, Frank Perch, Disgorge Motion (D.I. 2195) only addressed a few of the 100 felony violations and concluded that there were multiple, intentionally false, Rule 2014 affidavits and Fraud upon the Court had occurred. The US Trustee already proved TBF planted Barry Gold in the Debtor nefariously.

    [24] Many parties staunchly persevere in denying appeal party Haas, Article III standing, as “person aggrieved” in order to dupe any honorable authority of the System of Justice and parties of interest from knowing that egregious, heinous crimes have occurred. Doing so under “pretense” and “color of law”. Quite simply, the parties desire to cover up the issues, to hide the fact that well-established colleagues have stepped over the line. They need Haas to be denied standing so that adjudication upon merits never occurs. This will assure that the crimes go unpunished and cements material harm to parties of interest.

    [25] (Approving destruction of books & records is a specious event all its own)

    [26] Barry Gold has not disclosed his resume fact of being CFO of TSS Stores for 24 years, yet it is there where Mr. Gold first did a juggling act with § 327(a) and a §503(b) claim, as a Supplemental Affidavit in the Stage Stores Bankruptcy case shows that the dodging of § 327(a) of TBF and Barry Gold in many cases is profuse.

    [27] It is an undisputed Fact that both MNAT and TBF supplied multiple (19), false Rule 2014 Affidavits.

    [28] In re Envirodyne, 150 B.R. at 1022 (“if the professional sought to be employed does not satisfy one prong of this standard, the Code prohibits the court from authorizing his or her employment”).  His Honor Judge Alito stated In the Matter of Price Waterhouse 19. F.3d 138, 140 (3rd Cir. 1994) that the 3rd Circuit rejects the endeavor to misappropriate the Language that the Court may take a “flexible approach” in reference of In re BH&P, 949 F.2d at 1315 [**12] stating that “in the current case, we must interpret and apply Section 327(a) —– as we have explained, we find no ambiguity in the relevant language of Section 327(a).(It should be noted that none of the debtors’ creditors objected to the proposed retention in the Price Waterhouse case)

    [29] With the Stipulation to Settle, the Bankruptcy Court simply ignores a request for Rule 5004 Recusal and Rule 2020 Review of Failure to Act of US Trustee and the Opinion. Thus parties remain openly “conflicted”!

    [30] The Asst US Trustee resigned after placing in the Motion to Disgorge TBF for $1.6 million (D.I. 2195)

    [31] Haas has testified, continuously, that the CLI attorney, Henry Heiman, emailed the threat of TBF to Haas.

    [32] It has been subsequently learned that Judge Kent A Jordan was a partner of the Morris James law firm that Haas initially engaged for the CLI claim.  The Morris James firm issue necessitates Recusal under § 455.

    [33] The  US Attorney Colm F Connolly whose office has declined to prosecute the eToys perjury and Fraud. The Delaware US Attorney said there is no case.  (While not revealing the fact that Colm F Connolly was a partner with MNAT in 2001, when the fraud and perjury began. The violations of ethics remain insidious).

    [34] The Director of the US Trustee EOUST in Washington DC had replaced Roberta DeAngelis with a press release dated Dec. 22, 2004, as that was the very same date of the Emergency hearing on perjury it is key. At the same time, Director Friedman also had personnel, direct contact, with both Haas and Robert Alber, informing them that the issues would be addressed. Then, contrary to that assertion, Mark Kenney issues the Stipulation to Settle and Paul Traub continues his fraud pursuits in the KB Toys case, asking, without disclosing connections thereto, to be the one to prosecute a $100 million transfer. After Haas complained to the Asst US Trustee and Director Friedman both parties resigned for “personal reasons” with no remedy.

    [35] The Disgorge Motion states, effectively, that TBF did file multiple, intentionally false, Rule 2014 affidavits (more than 19), which were materially adverse to the eToys estate and the Disgorge Motion, concluded, materially adverse harm with fraud upon the court had occurred by TBF. (The Disgorge Motion only addressed four (4) of the 100 felony items documented to the Courts)

    [36] The Disgorge Motion is also erroneously silent concerning MNAT and footnote1 says Mr. Gold is O K.

    [38] Paul Traub was under direct Bankruptcy Court examination March 1, 2005 and while on the stand Paul Traub confessed to the fact that TBF paid Barry Gold four [4] payments of $30,000. (Transcript D.I. 2228)

    [39] (Violating 18 USC 3057(a), the Judicial Canon’s of Conduct as well as any sense of ethical decency).

    [40]  The Opinion is a 57 page that actually appears to be a defense document and is contradictory to itself and clear “unambiguous” statutory requisites and well established precedents within the Third Circuit.

    [41] A recent report given to Congressional parties by the Legal Victim Assistance Project remarks upon the fact that it appears the US Trustee system is complicit in fraud. The document by Meryl Lanson reflects upon the Third Circuit case of In re Arkansas Co., 798 F.2d 645 (3rd Cir. 08/13/1986) which specifically noted that the system will continuously be corrupted by attorneys.  The Third Circuit specifically cited Arkansas issues and remarked, “This approach would render meaningless the structure of the Bankruptcy Code and Rules which contain provisions requiring both prior approval of employment and after the fact approval of compensation. 11 U.S.C. §§ 327(a), 1103(a), 330; Bankruptcy Rules 2014(a), 2016, 2017”.  While this Circuit also remarked, “Among such practices was the cronyism of the “bankruptcy ring” and attorney control of bankruptcy cases. In fact, the House Report noted that “in practice . . . the bankruptcy system operates more for the benefit of attorneys than for the benefit of creditors.” H.R. No. 595, 95th Cong., 2d Sess. 92, reprinted in 1978 U.S. Code Cong. & Ad. News 5963, 6053

    [42]  The Disgorge Motion is very professionally written and detailed in proving fraud and perjury. Asst. US Trustee Frank Perch specifically states that the parties discussed the item of replacing key personnel of the Debtor with connected persons to the Court approved retained professionals and the US Trustee said NO!

    [43] The eToys docket item 2169 is Barry Gold’s response Jan 25, 2005 the Hiring Letter is Exhibit 1 thereof

    [44] The Hiring Letter says Mr. Gold is a “wind down coordinator” this is duplicative of CLI as “sole” liquidation consultant for the Debtor’s estate  The combined collaborative powers of TBF, MNAT and Barry Gold, along with a willfully blind US Trustee’s office effectively muscled out Haas and CLI from duties.

    [45] Both the US Trustee Disgorge Motion and the subsequent Bankruptcy Court Opinion of October 4, 2005 directly quote the issue of “wind-down coordinator” which is only provided within the Hiring Letter of Barry Gold. How a policing and judicial authority can see such “prima facie” evidence and remain silent is absurd!

    [46] Liquidity Solutions acquired many of the Claims of the Debtor and Liquidity is Co-debtor of Bain’s Stage.

    [47] MNAT supplied the HAAS Affidavit to the Court and then later claimed it was a “waiver”. The HAAS affidavit is eToys docket item 816 and any review clearly shows that CLI is entitled to success fees as it states in items 10 and 11 of the HAAS Affidavit. Combined with the amount of subterfuge no honorable body of justice can cleanly permit the parties to retaliate against HAAS without independent adjudication.

    [48]  The Courts simply ignore the Chairman’s affidavits including the one of June 2005 (D.I. 2288 Exh A)

    [49] EToys docket item 467 by CrossRoads LLC (the Court approved financial consultants) specifically states that Xroads negotiated the new D&O insurance for Barry Gold and was waiting up the Court’s approval of the hiring of Barry Gold

    [50] The Chairman of the Creditors Committee also gives affidavits stating TBF and Barry Gold deceived the Creditors Committee and the Court on Barry Gold and CLI issues. (D.I. 1481, 2111, 2281 & June 2005 2288.

    [51] Mark Kenney was irritated at Haas persistence as Haas had notified Mark Kenney all along including Haas calling to Mark Kenney attention that the case Mark Kenney told Haas of, to dismiss Haas allegations, the Bonus Sales case and Mark Kenney failed to move immediately to rectify. Whether Mark Kenney has received remuneration or other considerations or is just seeking to be a good buddy, he is complicit overtly.

    [52] Matter of  Stewarts Foods v. Broeckor (In re Stewart Foods) 64 F.4d 141, 27 Bankr. Ct. Dec. (CRR) 1016, 34 Collier Bankr. Cas. 2d (MB) (a claim arising from breach is an administrative expense if actual benefit)

    [53] Evening the Opinion of the Bankruptcy Court concluded that “extraordinary” circumstances existed in the eToys case & failure to address fraud on the court would “reward conflicting attorneys and punish plaintiff

    [55] Proving Asst US Trustee Frank Perch correct, about lacking sufficient deterrent, Paul Traub of TBF was discovered to be petitioning to handle the $100 million cash payment to Bain in the KB toys bankruptcy case. Where TBF has not disclosed connections to Bain, Barry Gold worked in KB Toys with ADA and MNAT brazenly and flagrantly represents Bain. When Haas pointed it out Mark Kenney defended fraud. (DI 2228)

    [57] Please see In re California Canners and Growers (Bankr. N.D. Cal 1987) 74 B.R. 336, also affirmed in Image Technical Services, Inc v. Eastman Kodak Company (N.D. Cal. 1993) 820 F. Supp. 1212, 1217 that also cites Schmitz v. Ziveti (9th Cir. 1994) 20 F.3d 1043, 1048-1049 “a lawyer has a duty to investigate for his [firm’s] potential conflicts of interest [reporting any violations to the court].

    [58] Haas has submitted this into the record along with other items and His Honor Baxter permitted the parties to Strike and Expunge the Haas statement at the behest of the perpetrators. (D.I. 2294, 2295, 2297 & 2302). In revealing the actuality that Heiman passed along the threats by email Haas and CLI do not waive attorney client privilege.

    [59] The Debtor’s schedules stated that eToys only transacted $100 million prior to filing bankruptcy.

    [60]    July 25, 2005 the WSJ had issued a press story about the issue, which can be seen at  http://www.wjfa.net/bk/etoys.html  A Wall Street Journal article on the TBF issued was printed July 25, 2005

    [61]   See also In re Seatrain Lines, Inc., 13 B.R. 980, 981 (S.D.N.Y. 1981) and In re Fretheim, 102 B.R. 298, 299 (D. Conn. 1989). In re Twinton Properties 27 B.R. 817 Bankr. (CCH) 69096 (MD. Tenn. 1983) listing the 9 elements to be clear and convincing of no conflict.  In re: Childress v. Middleton Arms (“Bankruptcy Court may not authorize even if the [Plan] debtor would be better served”.) (The Sup Ct and Third Cir affirmed Middleton Arms certification that failure to disclose mandates disqualification.)  The quotes comes from the US Trustee’s Manual vol. 3, United States – Kraft v. Aetna Casualty and Sur. Co., 43 B.R. 119 (M.D. Tenn. 1984)

    [62] http://www.usdoj.gov/ust/eo/public_affairs/sig_guidance/index.htm  This Dept of Justice Trustee Handbook and Guidelines is on a website so that everyone may know the Law. To keep the system Kosher.

    [63] CORPORATE DISCLOSURE STATEMENT  PURSUANT [US Trustee] TO FED. R. APP. P. 26.1 [the]United States Trustees are officials of the Department of Justice appointed by  the Attorney General to supervise the administration of bankruptcy cases and trustees .  See 11 U.S.C. §§ 581-589; United States Trustee v. Revco,D.S.,Inc. (In re Revco  D.S.,Inc), 898F.2d498, 499 (6`hCir. 1990)(“[t]heUnited States trustee, an officer  of the Executive branch, represents . .[the] public interest.”)

    [64] The Disgorge Motion 1st footnote states -1/ Gold, “as an employee of the debtors rather than a professional employed under 11 U.S.C. §§ 327(a)”, was not required to file a Rule 2014 affidavit

    [65]   See  In re Seatrain Lines, Inc., 13 B.R. 980, 981 (S.D.N.Y. 1981) and In re Fretheim, 102 B.R. 298, 299 (D. Conn. 1989). In re Twinton Properties 27 B.R. 817 Bankr. (CCH) 69096 (MD. Tenn. 1983) listing the 9 elements to be clear and convincing of no conflict.  In re Kraft v Aetna (appraiser cannot bypass 327(a) by stating mechanical services.) In re: Childress v. Middleton Arms (“Bankruptcy Court may not authorize even if the [Plan] debtor would be better served”.) (The Sup Ct and Third Cir affirmed Middleton Arms certification that failure to disclose mandates disqualification.)  The quotes comes from the US Trustee’s Manual vol. 3, United States – Kraft v. Aetna Casualty and Sur. Co., 43 B.R. 119 (M.D. Tenn. 1984) The Circuits have long adopted the notion that it is the “autonomy” in bankruptcy decisions that is germane.  You cannot simply rename a “wind-down coordinator” to the post of janitor (or CEO) & bypass the statutory requisite of the Code, an estate “sine qua non” is disclosure, above all else

    [67] (We apologize if it seems that there is redundancy here, in pointing out the items that may now seem obvious and hammered home. As our efforts for 6 years, to get the felony criminal acts halted, have thus far been unsuccessful, we do not know how to conform with the requisite of the Law by any other manner than that of repeating the narrative enough, until someone “gets it” sufficiently- to then halt the crimes/remedy)

    Dept of Justice covers up perjury, fraud and Racketeering in eToys, Stage Stores, KB, that has benefited Mitt Romney’s Bain entity

    October 7, 2007 5 comments

    Dept. of Justice does Cover-up of $300 million in Fraud and

    Securities schemes – connected to Mitt Romney’s Bain entity.

    UPDATE June 2009

    WARNING – there is an Organized Criminal element that has illicit influence over the DE Federal Bankruptcy Court !

    Please take the time to review the facts documented below – For Your Sake!

    The US Trustee was replaced, the Asst US Trustee made a Motion to Disgorge for $1.6 million – then 9 days later the DOJ Trial Attorney voided the Motion to Disgorge and gave the perpetrators  immunity – despite the fact that they Confessed to 34 false affidavits in order to Deliberately Deceive the Federal Court in $200 million in fraud.

    Then the perpetrators tested their impunity level and committed another $100 million fraud and the same DOJ Trial Attorney petitioned the Courts to Strike & Expunge the proof of Perjury and Fraud on the Court.

    Resultantly the Director of the Exec Office of United States Trustee’s in Washington DC RESIGNED (here) and the Asst US Trustee stepped down as well.

    We informed the FBI, OIG, Public Integrity Section, OSC, OPR, OGE, Pres Bush Corp Fraud Task Force, the SEC and many more.

    All of whom referred us to the local US Attorney and the General Counsel of the EOUST.

    Unfortunately the removed Region 3 Trustee was quietly and speciously promoted to the post of Acting General Counsel of the EOUST. The quiet part is the fact that there was no press release on the high level promotion until years later when we discovered the issue – the specious part is her office was in charge of investigating her case

    and NOW – she has been placed back within to clean up her own mess (see belated DOJ UST press release (here))

    We all find it rather Odd that there are no other US Trustee press releases since Oct 2008!

    We also discovered the fact that the Local US Attorney in DE, whose office refused to investigate or prosecute the Perjury & Fraud failed to disclose the fact that he was a partner with the MNAT law firm in 2001 – the very year that MNAT confessed to failure to inform the Court of the Non Disclosure of Conflicts of Interest.

    You normally could see the USDOJ Office of Legal Policy copy of his Resume (here) – but they have yanked it down – we kept a Print Screen Copy for anyone who wants it.

    Then we reported those Ethics Violations and Model Rule of Conduct issues to the US Attorney in CA – who never responded.

    However;

    The Los Angeles Times reported on a story “Shake-up roils federal prosecutors” – where the central CA USA walked into a weekly staff meeting and summarily disbanded the Public Corruption Unit (here)

    If you read the entire LA Times story – you will see that it reports that DOJ personnel were Threatened to remain silent OR ELSE!

    The party that was given immunity was Paul Traub’s firm of Traub Bonacquist & Fox.

    The relevance outside of the previous eToys.com fraud is the basic fact that Traub as Creditors counsel placed his partner (Barry Gold) within eToys as President/CEO – and MNAT helped draft the Hiring Letter that stayed hidden until we documented the Perjury – it contains a clause that allows Barry Gold to choose – whether or not – to apply to the Court per Section 327(a).

    Barry Gold committed on the stand Perjury denying his connections to Traub when an eToys shareholder questioned him in 2002 after he supplied a Plan Administrator’s Declaration – Under Penalty of Perjury – stating that the Plan involved “extensive” “arms length” and good faith negotiations between Debtor and Creditor.

    That is between Barry Gold and his partner Paul Traub.

    The DE Bankruptcy Court warned this whistle blower to back off – as did Paul Traub’s firm – where Susan Balaschak and the whistle blowers own Attorney emailed a Threat that if Laser Haas did not Back Off – not only would he and the Court approved company (CLI) that he owned – they would not get paid – Laser’s career would be destroyed and they would come after him for previous earnings.

    When the WSJ released an article the day after the Threat was made July 25, 2005 (here)

    It is Our Federal System of Justice that has become an Organized Criminal Enterprise and the fact that this whistle-blower failed English and was spanked by the Houligans should not by the basis for apathy or lack of introspect.

    The EOUST replaced the Region 3 Trustee Dec 22, 2004. The US Trustee press release stated the new party is experienced in Fraud matters (here)

    Making the crimes extensively egregious and heinous is the fact that the US Trustee testified it forewarned the parties NOT to replace key personnel of eToys with anyone connected to the retained professionals (as such is against the Law Section(s) 101(14), 327(a) and Affidavit Rules 2014,2016) (see Disgorge Motion parts 19 & 35 (here))

    The Disgorge Motion concluded, when it did not know of the 100 other crimes that transpired – that the acts of deception were deliberate, rather than inadvertent and Traub’s firm had perpetrated Fraud on the Court.

    So it remains inexplicable – that the US Trustee’s website Tout’s its fiduciary responsibility to monitor and Police Fraud (see UST website right hand top corner (here)) – yet the DE DOJ Trial Attorney gave Paul Traub’s firm Unlawful immunity and the promise of the US Trustee to refrain from its fiduciary duty as is testified in PDF pages 8 & 9 (here) as the Stipulation to Settle the Disgorge Motion that is Proffered by the US Trustee states;

    WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures

    Researching what would prompt the DOJ to offer future willful blindness – led us to the discovery of additional crimes.

    Seems MNAT, Barry Gold and Traub all have a working relationship with Bain and Goldman Sachs.

    eToys sold the bulk of their assets to Bain/ KB for discounts in the hundreds of millions and MNAT, Traub and his partner Barry Gold negotiated the deals.

    This is Collusion.

    KB filed two bankruptcies, in the one DE Bankr 04-10120 – Michael Glazer as CEO of KB paid himself, others and BAIN $100 million – prior to the Bankruptcy Filing.

    The party representing BAIN is MNAT

    Michael Glazer was a director and shareholder of Stage Stores – and Barry Gold / Traub’s firm worked for Stage Stores and their Directors (Stage Stores is mostly owned by Bain associated parties)

    Then Paul Traub petitioned the KB Toys Court to be the one to prosecute the $100 million dollar preferential that MNAT was defending.

    Akin to Capone asking Frank Nitti to be the one to prosecute him.

    When we pointed out those crimes to the Court – the same DOJ Trial Attorney (Mark Kenney) petitioned the Court to Strike and Expunge the proofs of Perjury and Fraud (here)

    This was not the only time Mark Kenney and his associates Obstructed Justice – he also asked the SEC to back off from initiating an official investigation and Mark Kenney, Roberta DeAngelis (as Acting GC of the EOUST) among others petitioned the 3rd Circuit Court to Expunge the case.

    They were defending their brief that offered immunity to Traub that the DE Bankruptcy Court approved when the whistle blower appealed the DE Bankruptcy Court’s decision to honor Paul Traub’s threat.

    Paul Traub, MNAT and Barry Gold told the DE Bankruptcy Court that whistle blower generoursly waived its $3,7 million in commissions and fees. For eToys was selling all their assets to Bain/KB for $5.4 million. When Laser Haas and his company CLI helped get back over $45 million to eToys bank accounts he had no idea that the reason those parties were making it so HARD to sell – was they were selling eToys to themselves.

    When Laser Haas told the DE Court that the Affidavit was a forgery  and pointed out to the Court that the very document the parties claim is a Waiver – states that CLI can seek success fees’;

    The Court said that the whistle blower does not have standing as a person aggrieved – seems you need the court’s permission to point out criminality!

    Does not matter much – as Stage Stores was Co-Debtor with Liquidity Solutions.

    Right after Paul Traub and MNAT secretly planted Barry Gold within eToys as President/ CEO – Liquidity Solutions and related companies began buying up the eToys claims.

    Barry Gold has thus far paid out over $10 million in fees to Traub, MNAT and others that participated in the Cover Up’s.

    Where the other $30 million plus has gone and how much to the Liquidity Solutions accounts – despite the fact that they are Collusions – will never be known.

    Currently eToys (for the shareholders sake and creditors) is suing Goldman Sachs in the NY Supreme Court.

    Being that MNAT represents Goldman Sachs in DE – MNAT nominated Traub’s firm to do the work and the Court approved Traub’s Supplemental Affidavit – that he confessed was false.

    It is also learned that Traub’s NY co-counsel of Wachtel helped with Barry Gold’s Director & Officers (D&O) insurance in eToys.

    Traub and his cohorts know that he was caught red-handed by Laser Haas due to mistakes forgotten in Court docket records – this may explain why half the NY Sup Ct case 601805/2002 is Under SEAL.

    At the same time one of the very first eToys documents that the DE Court approved of – at the behest of MNAT – was the Destruction of eToys Books n Records.

    Despite that Destruction – the whistle blower found $2 million in cash deposits hidden overseas that David Haddad was trying to keep hidden.

    Whistle blower Haas also discovered that Foothill Capital loaned eToys $40 million in November 2000 and transacted over $100 million that was paid to Wells Fargo prior to the March 7, 2001 bankruptcy filing of eToys.

    Barry Gold, Xroads LLC and Paul Traub all having a working relationship with Wells Fargo.

    This is a crime of Collusion to Defraud an Estate as is well established in the on point case of In re Bucyrus 94-20786 (E D Wish 1994) The book written by Milton C Regan of “Eat What You Kill” the fall of a Wall Street attorney – documents how a $35 million dollar loan (by a former Goldman Sachs guy) was never reviewed and Gellene went to Jail as Milbank Disgorged it’s entire $1.9 million and lost a $20 million dollar + litigation.

    If the reader here does not understand the harm that was being done by the duplicity of the DOJ giving Paul Traub immunity, then I guess it does not matter either that both of Paul Traub’s other partners – Marc Dreier and Tom Petters – committed $700 million and $3 Billion in Fraud!

     

    PREVIOUS

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        The items we offer below are related to fraud issues that are documented by Official records such as the Federal Court docket system.  This is what is so amazing about this case.  The proof is there, black n white, for all to see, it is the prosecution of the crimes that is severally lacking.

         The law firms of Traub Bonacquist and Morris Nichols are consistently involved with Bain and Bain related issues.  The crime has occurred where Traub and Morris Nichols have failed to disclose the Bain related issues to the bankrutpcy court while they negotiated the sale of eToys bankruptcy assets to Bain/KB in discounts of tens of millions of dollars.

          The Dept of Justice desires to slap the wrist of the felons, who are law firms and the party the law firms placed within eToys as wind down coordinator. That being Mr. Barry Gold.  Mr. Gold is a paid associate of Traub.  Traub and Morris Nichols drafted a clandestine hiring letter that allowed Mr. Gold to circumvent the Court and the Law improperly.  The letter was not revealed until after we proved the non disclosed connections.

            The selling of the eToys bankrupt assets to a party that you are connected to is Collusion to defraud an Estate.  Being that they did so “collaboratively” is a Conspiracy to Defraud an Estate.  As they are officers of the court, self policing - who provided false affidavits to the Court – that facilitate these frauds, doing so over many years, in multiple estates, by mutiple parties in places across  the country all the criteria for Racketeering is satisfied.

       The Delaware US Attorney that has refused to prosecute is Colm F Connolly, who is now discovered to have been a partner with Morris Nichols when the fraud was initiated.

         More morose than the egregious matter of Colm Connolly not prosecuting his partner and associates is the client relationships of Bain with Morrs Nichols. For Bain was owned and controlled by the  Mitt Romney at the time the malfeasance was facilitated. 

      Now Colm Connolly is being promoted to a Federal Judge.  The cause and effect issues are readily apparent.  The need to halt this massive manifest injustice has gone uanswered. 

       The Fraud has come full circle.  One of the sales that Traub, Morris Nichols, Irell & Manella, Xroads LLC and Barry Gold halted, was parties that desired to acquire the public entity of eToys.  As severe an offense as that is it is compounded by the fact that eToys is now public again, by the scheme of dissolving the former shareholders of record nefariously.   A former Bond holder executive who participated in circumventing the Court and the Code is now key exec at D E Shaw who participated in the merger of eToys Direct with BabyUniverse on NASDQ at stock symbol POSH.

         Mitt Romney has declined to provide the details of his financial fortune(s). As it is documented that he has benefited through Bain from the malfeasance. While the Dept of Justice personnel acts in a treasonous manner toward their Oath of office in refusing to prosecute the blantant acts of fraud. If this is the way the Dept of Justice protects Mitt Romeny before he becomes President, what would occur after?

      ———————————————————————

    Below you will find a short story version of the facts and after that, some headline suggestions, which is followed by more detailed discussions including emails with Dept of Justice key personnel who resigned thereafter.

    ———————————————————————-

    eToys  goes public in mid 1999 and Bankrupt in March 2001

    sells assets to Bain /KB for discounts in tens of millions.

                The public entity eToys.com filed for bankruptcy in 2001. At which time the court approved the law firms of Traub Bonacquist (TBF) and Morris Nichols (MNAT) to be the Creditors and Debtor’s counsel.  The law mandates that both firms have no connection with eToys or with each other.  The rules of conflict of interest are designed to assure the public and the creditors get a fair deal, especially when communal stock companies are involved. They must keep their hands out of the cookie jar.

                The policing agent assigned to be the watchdog for the public is the Dept of Justice US Trustee’s office. The US Trustee program was formed around 1987 to separate such duties from the Judges who were handling bankruptcy cases. Congress felt such separations were necessary in order to halt any  cronyism or corruption  possibilities with the millions, which has since become billions of dollars, in complex legal decisions and  million dollar fee’s that Judges permit law firms and other court approved professionals to earn each year. Cronyism  in any fashion is a forbidden practice.

     

    Whistle-blower Laser Haas exposes conflict of interest in eToys

     

                There are more than 100 statutory violations that have occurred in eToys. Including perjury, scheme to fix fees, intimidation of victim/witness, conspiracy, obstruction of justice and RICO violations to name a few. The $300 million in fraud has not been prosecuted by the DOJ, even though confessions to perjury have occurred.

                So that the reader may understand the serious consideration of the issues below I, Steven Haas (a/k/a Laser Haas) testify that the foregoing is true and correct. These statements are made under the “Penalty of perjury” this 25th day of October 2007.

                Collateral Logistics’ Inc (CLI), a company owned by Laser Haas, was hired as the Court approved liquidation consultant where eToys had announced that they were going to auction off hundreds of millions in assets for $5 million.  The bankruptcy assets were eventually sold to Bain/KB. The combined efforts of Barry Gold, MNAT & TBF etc gave Bain/KB discounts in the tens of millions.  At that time Bain was owned and/or controlled by the Presidential hopeful Mitt Romney.

                The sales efforts of Laser managed to get back more than $45 million into the eToys bank accounts. Yet for some inexplicable reason the new CEO of eToys, Barry Gold and the law firms TBF & MNAT kept finding fault with Laser’s accomplishments. When Laser discovered the possibility that Barry Gold and TBF might be associated  and thereby be in legal violation of lawful disclosure requisites Laser was offered a very clever bribe of $800,000 with a warning of TBF’s high connections. 

                Upon turning down that gratuitous offer, a campaign to destroy Haas began that forced Laser to hire a new attorney for CLI. Henry Heiman who was formerly a Trustee in Delaware. TBF, MNAT and Barry Gold had “produced” some documents to the Court stating that Haas generously waived all earnings.  CLI was entitled to more than $3 million in fees and expenses.  Heiman stated that he would correct the matter, that the contracts the court approved were indisputable and that CLI would be paid in 30 days. Haas told Heiman and the US Trustee office how the parties had tried to invite Haas to become one of the “good ole boys”. Both stated there was no law broken, that no court violation had occurred and denied any legalities/violations of conflict of interest issues.

     

    HAAS studies Law on DOJ website and informs his lawyer and DOJ of perjury

     

                Two years later Laser began to sense that Heiman did not have the best interest of CLI in mind; so Laser started to research the Code and Rules of the bankruptcy system that anyone can find on the Dept of Justice website. The law states the Courts can only approve attorneys for work in bankruptcy matters, once the attorneys submit an Affidavit, under Bankruptcy Rule 2014. Attorneys must state that there are no connections or conflict of interest. They must not touch the pot of golden cookies in the cookie jar.

                The DOJ website led Laser to discover that his both Heiman & the Dept of Justice Attorney, Mark Kenney, had lied to Haas that the bribe was not an issue unless accepted. Perjury had been committed by the false affidavits that had been tendered by the attorneys. TBF, Barry Gold, MNAT, etc, had been paid more than $14 million in fees and expenses.  Attorneys must re-certify there are no conflicts whenever the seek payments.  They must submit fee applications at least every three months.

     

    Parties angered at Laser’s investigation warn HAAS to “back off” or else!

     

                Upon supplementary discoveries of malfeasance Laser again contacted the Dept of Justice’s Mark Kenney and informed him of the issues at hand. This resulted in heated phone conversations whereby Heiman emailed Laser a threat by Susan Balaschak of TBF. Stating if Haas did not “back off” from his investigations not only would CLI not get paid for the work the Court had approved, Laser’s career would suffer greatly and TBF would seek additional retaliations to come after Haas for monies earned earlier.

     

    DOJ Attorney slip of tongue provides proof of Perjury and Fraud.

     

                When Laser called the Dept of Justice about such, Mark Kenney also addressed Haas in an angry manner and stated that the conflict of interest issues of Barry Gold and TBF had been handled in Bonus Sales. There it was, out of anger, a slip of the tongue, Mark Kenney accidentally provided Haas with the place to find the proofs that the Dept of Justice had known all along. Undisclosed conflicts of interest of TBF and Barry Gold existed and had already been addressed by the Courts twice before. Congress has mandated that all court cases now be available to the public by Internet access, knowing the fact that issues hidden tends to corrupt. The public access system is called PACER.

                 Researching PACER for the Bonus Sales case (Del Bankr 03-12284) led to the discovery of a company TBF’s owner, Paul Traub and Barry Gold hold together.  That being the entity of Asset Disposition Advisors. (ADA)  The old adage of the lie told yesterday is forgotten when one tells a lie today proves to be correct in this case.

                Haas’s attorney Heiman refused to supply the Court with this damming information and Heiman immediately asked the Court to withdraw as CLI counsel.  Upon Laser’s supplying of the proof to the Court, the eToys shareholders reached out to Laser. The comparing of notes led to discovery of many additional hidden secrets. Both the shareholders and Haas made Emergency motions to ask the Court to deal with the issue of the false affidavits that were to be heard on December 22, 2004.

     

    Director of DOJ replaces Region 3 Trustee in Delaware

     

                 The Director, Lawrence Friedman, of the US Trustee’s in Washington D C replaced Roberta DeAngelis by a press release on Dec. 22, 2004.  At the Emergency hearing on Dec. 22, 2004 the Judge Ordered TBF, MNAT and Barry Gold to address the non-disclosure of conflict of interests issues by responses on Jan. 25, 2005.  The Asst US Trustee, Frank Perch armed with the responses and confessions of multiple, intentionally false affidavits, then Motioned to Disgorge TBF $1.6 million on Feb. 15, 2005.

     

    DOJ Attorney, Mark Kenney offers felony violations a Get out of Jail Free Card

     

                Just when Laser and the eToys shareholder key researcher (Robert Alber) felt that justice would occur, out of the blue, less than 10 days later Mark Kenney enters a Stipulation to Settle that reduces the penalty of the returned monies of $1.6 million to only $750,000. At the same time Mark Kenney included language within the settlement that implied a get out of jail free card to everyone while also permitting continuous circumvention of the Law. It illegally states that the parties would not be compelled to tell any of their other illegitimate activities. Mark Kenney being charged by Oath with protecting the public’s interest had turned collaborator and seeks to protect the perpetrators of fraud on the court with a slap on the wrist fine.  This is simply absurd!

     

    Paul Traub confesses to paying Barry Gold 4 payments $30,000 each

     

                Not only has TBF & MNAT confessed to several acts of false affidavits, Paul Traub of TBF also confessed directly to the court that he paid Barry Gold four payments of $30,000 each that stopped when TBF & MNAT placed Barry Gold secretly within the Debtor. A hidden Hiring Letter shows that Barry Gold was given illegal permission to circumvent the Court and the Law, by his own choice, and such was deliberate.  Once he agreed to violate the law, he was then paid $40,000 per month and a bonus at the end. To earn this money all Barry Gold had to do was work 4 days per month for the Debtor.

                Laser and Alber immediately complained to the Court, to Frank Perch and the Director of the Dept of Justice EOUST office, Lawrence Friedman. Mr. Friedman emailed Haas his staff was on top of it and that the matters would be addressed properly.

     

    Laser and shareholder Alber inform Court of Bain conflict of interest 

     in eToys, where KB, MNAT, TBF & Gold all are connected.

     

                At the same time Haas and Alber began researching for the reasons why the Dept of Justice’s Mark Kenney would stick his neck out, so flagrantly against the Law. To everyone’s surprise the additional non-disclosures the Stipulation tried to cover up was the fact that MNAT, TBF & Barry Gold all had non-disclosed connections to KB/Bain.  TBF and Barry Gold had worked for/with Bain. SanKaty, Stage, as Mitt Romney owned the entity called Stage Stores, also a bankruptcy matter in another state, Texas.

                MNAT, it turns out, also represents Bain interests on a regular basis.  MNAT had handled a Mitt Romney/Bain connected entity, the Learning Company, when it merged with Mattel.  Both the Bain and Mattel issues mandate immediate removal of MNAT, TBF & Barry Gold with referral to the United States Attorney’s office for prosecution.

     

    Dept of Justice is strangely silent about MNAT confessions of false affidavit’s.

     

                Yet the Disgorge motion and Stipulation to Settle speciously ignores MNAT. There are also multiple $100 million dollar preferential issues in both eToys and KB Toys bankruptcy that have never been reviewed. MNAT brazenly represents Bain in the KB Toys bankruptcy case. This is also a crime as has been established in the matter of In re Bucyrus. In that case Milbank was disgorged their entire fee’s paid, the Law firm lost a $20 million lawsuit and Gellene was sent to jail for his perjury in trying to hide such from the Court by false affidavits. A book on the Gellene matter is available on Amazon, entitled Eat what you kill -The fall of a Wall Street Lawyer.

     

    Armed with get out of Jail Free Card Paul Traub commits additional

    fraud asking for permission to prosecute $100 million cash payment

    of parties Traub is connected to in KB Toys case.

     

                To demonstrate how little the $750,000 meant to TBF as a deterrent, Paul Traub then petitioned the Court to handle the $100 million dollar preferential of Michael Glazer and Bain in the KB Toys case. TBF and Barry Gold did not inform the KB Judge of their connections to Bain and Glazer. Whereupon Haas and Alber immediately cried foul to Asst US Trustee Frank Perch, to the Court and to Lawrence Friedman.

     

    DOJ attorney Obstructs justice defending perpetrators while asking the Court

    to strike and expunge HAAS and Alber proofs of perjury and fraud.

     

                Mark Kenney responded to the proofs provided by Laser by Obstructing justice stepping in as the defense for TBF. Kenney asked the courts to strike and expunge the proofs provided by Laser and Alber. The Court signed an Order dismissing Laser’s & ALBER’s comments and then held a hearing about the issue. As if such treasonous defenses and improper procedures were not enough, Laser discovers that Mr. Perch and Lawrence Friedman both put in their resignations, from their positions of esteemed office, for “personal reasons”. Leaving an perceptible void of responsible authority. The resignations,and Traub settlement were detailed in the WSJ article on July 25 2005.

     

    Threats of “or else” come true and parties defraud CLI and Laser

     

                As Mark Kenney was successful in assisting in the defense of TBF, MNAT and Barry Gold, the court also assisted the threats of TBF against Haas, by allowing the CLI claims hearing to be rescheduled.  Haas’s new counsel, Brad Brook, now having a slam-dunk case against the fraud, with admitted acts of perjury, should have motioned to win the case, bizarrely, instead Brook asks to withdraw. Stating falsely that Haas had disappeared and could not be reached. Brook could not offer or state it was a monetary issue as his firm believed in Laser’s case so much they took it upon contingency.

                The Court permitted the rescheduling, the withdrawal of Laser’s attorney and then summarily dismissed the CLI claims case.  The Court ignoring the issues of due process and Constitutional rights, even went so far as to refuse Laser’s new counsel from speaking to the Court the very day the Court dismissed the $3 million claim that CLI had earned from the Court approved contracts as liquidation consultant.

     

    Laser and Alber contact FBI, OIG, US Marshalls only to be referred back

    to the Dept of Justice parties seeking to coverup the perjury & fraud.

     

                Both Haas and Alber complained to the FBI, the US Marshall’s, the OIG, the OGE and the OPR offices of the US Government.  All of which referred Haas and Alber to the US Attorney’s office in Delaware and the US Dept of Justice office of General Counsel of the EOUST in Washington D.C..

                The sham of these referrals is the fact that the after the resignation of Lawrence Friedman, the replaced Region 3 Trustee, Roberta DeAngelis was promoted by the Dept of Justice to be the Acting General Counsel for the US Trustee’s. DeAngelis is now scandalously in charge of investigating her own cases that she was removed from!

                Making matters even worse the US Trustee’s office has been acting as appellee in the appeals of Haas and Alber, improperly defending TBF, MNAT and Barry Gold by asking the Courts to strike and dismiss the Haas or Alber appeals for being “without merit”. Roberta DeAngelis has actually signed a brief asking the 3rd Circuit to dismiss, which violates her oath of office and fiduciary duty to serve the public Trust.  Mark Kenney and DeAngelis are both guilty of breach of Fiduciary Duty as per 18 USC 1346.

     

    Bankruptcy Court Judges issues 57 page Opinion on Perjury and Fraud stating

    no Perjury was proven ignoring the 5 confessed false affidavit’s.

     

                Heading off the first appeal of Laser, the bankruptcy court issued a 57 page Opinion that testifies on behalf of the perpetrators and states clearly erroneous findings of fact and conclusions of law to justify the position. It is as if the Delaware bankruptcy court has become a twilight zone and sanctuary for white-collar, syndicated crime!

                Anyone can plainly see that the entire system of cronyism is defending TBF, MNAT and Barry Gold. The one question that has remained unanswered is Why?  Who can it be, that the entire system is protecting?  At the same time the question comes to mind as to how high does the manipulation of the system go?  Is the White House aware of all the perversions of the Justice system and if so, why has no one sought to correct the problem? Where does the power come from that can manipulate the Dept of Justice?

     

    Dist Court Judge dismisses all 3 appeals and then is promoted to 3rd Circuit

    Judge Kent Jordan was partner at law firm that represented Laser’s CLI in etoys

     

                Everywhere that Haas and Alber look they find inexplicable questions of connections and cronyism that remain unanswered, even though the acts of impropriety are clearly evident. Just months ago it was discovered that the Judge who had heard all 4 Delaware District Court appeals in the eToys case, Judge Kent A Jordan, was a partner in the firm of Morris James.  As per the law § 455 Kent Jordan should have recused himself from the case as his firm Morris James was the firm that Haas had fired when he had hired Henry Heiman to pursue the claim of CLI in eToys.

     

    Laser discovers that US Attorney who refuses to prosecute was partner at MNAT

     

                Also the resignations of esteemed parties do not cease, as Debra Yang of President Bush’s Corp Fraud Task Force also resigned without providing any remedy. A feat that is only made pale by the fact that it is now discovered that the US Attorney for Delaware Colm F Connolly was a partner of the law firm of MNAT.  Colm F Connolly is now to be the Judge in Delaware District Ct position made vacant by Kent A Jordan.

                It appears it certainly is a great career move to refuse to investigate or prosecute one’s former partner, associates and clients. Especially when the Presidential hopeful Mitt Romney owns one of the clients and has benefited from the malfeasance.

                Nevertheless, it now has to be a vital cause of concern for MNAT, Barry Gold, TBF & Mr. Connolly, as such actions are unethical, illegal and good reason for Colm Connolly failing to be promoted to the Federal Judge position. The lawbreakers now realize they are caught, red-handed, with everyone’s hands in the cookie jar.  

     

    .

     

     

      Many possible headlines, all true, just choose one depending on your nerve!  

    Dept of Justice personnel Cover up Racketeering in eToys, Stage Stores and KB bankruptcy matters which has connections to Mitt Romney

     

    Dept of Justice has conflict of interest in failing to prosecute

    Perjury and fraud that has benefited Mitt Romney

     

    Delaware US Attorney has failed to prosecute Perjury, fraud

    and conspiracy in eToys bankruptcy case despite over 100

    documented statutory violations and confessions

    to falsifying multiple Rule 2014 Affidavit’s!

     

    Dept of Justice engages in cover up of $300 million dollar fraud case of eToys.

     

    Dept of Justice has conflict of interest issues for refusing to prosecute Perjury and $300 million in Fraud related issues concerning eToys, KB & Stage Store bankruptcies.

     

    US Attorney Colm F Connolly failed to prosecute $300 million in Perjury and Fraud issues of eToys involving Colm F Connolly’s former clients & law firm MNAT.

     

    Laser Haas own attorney, Henry Heiman emails threat of

    Traub Bonacquist law firm for Haas to “back off’ or else!

     

    The short version of the legal story of corruption and Fraud with key DOJ emails!

                The issues are complex, convoluted and yet really simple. $300 million has been fleeced from the bankruptcy cases of KB, Stage Stores and eToys reprehensibly. Perjury is being supported by multifaceted exploitation of legal premises in order to protect inner circle legal elite. All one has to do is look at Court docket records as the facts are there!

               

                The court approved firm of the Creditors in eToys is Traub Bonacquist (TBF). TBF has already admitted to providing the court with multiple, false affidavit’s that they knew were false. A false affidavit by any regular citizen is perjury. The Delaware law firm of Morris Nichols (MNAT) represents the estate of eToys by the Court’s approval. MNAT has also admitted to filing multiple false Rule 2014 affidavits. [Perjury]

                What TBF, MNAT and the CEO of eToys did not tell anyone in the beginning [2001], until it was discovered 3 years after the fact[fall 2004].  Is that TBF, MNAT and Barry Gold all have undisclosed connections to Bain/KB.  Which is a major crime of collusion and fraud, being that eToys sold the bulk of the assets to Bain/KB. An issue that is compounded further by the fact that Bain was controlled and/or owned by Presidential hopeful Mitt Romney.

                Then the Court, the US Trustee and the US Attorney refused to investigate or disqualify the parties, including MNAT, even though the Law and all legal precedents mandates such disqualification and referral for prosecution must be done. 

                To make matters even worse, TBF, MNAT drafted a “clandestine” Hiring Letter for Barry Gold, as a way for Mr. Gold to avoid perjury risk.  Then TBF & MNAT placed Barry Gold in as the eToys, “wind down coordinator”, who became the President/CEO and finally the confirmed Plan Administrator in control of $50 million in cash.

                TBF also confessed to the Court, on March 1, 2005 that he paid Barry Gold 4 separate payments of $30,000, each which halted once TBF placed Barry Gold within the eToys estate, in secret. Where Barry Gold then received an initial $40,000 per month.  Making Barry Gold a direct paid party of TBF.  The fact that MNAT and TBF drafted the Hiring Letter that allowed Barry Gold to intentionally circumvent the Law and the Court is a feat only exceeded by the lack of prosecution of a matter that is connected to a $300 million in unanswered fraud issues while the original stockholders are thrown away and eToys.com is going public again on NASDQ with only 17 stockholders.  While no one knows if Mitt Romney is to be one of the stockholders in the new company, many of the Bain employed persons are participating in the merger with BabyUniverse.com which will seal the deal of stealing the assets from the eToys shareholders even though it is now readily apparent that the sale to Bain/KB failed the legal requisite of being “bona fide”!

                The Courts have continuously acted contrary to Constitutional mandates shamefully and have stricken, expunged and dismissed our proofs of fraud at the direct request of the United States Trustee.  Repeatedly throwing out Laser and the eToys shareholders. This is Obstruction of Justice in every sense of the word.

    Delaware US Attorney Colm F Connolly

                The US Attorney, Colm F Connolly, for Delaware; has refused to investigate or prosecute the issues for several years. Being that the whistle blowers are Laser Haas, a Court approved employee in the bankruptcy case and other “pro se” parties such as eToys stockholders, it is easy to sweep the issue under the rug.

                After all, who are people, press, authorities going to give the most credibility to? The “pro se” parties who are losing their rights to be paid?  Or the esteemed DOJ parties of a US Attorney, US Trustee who have the blessing of a Chief Federal Justice?  After all we all trust the system of justice!

                Armed with the newly discovered  evidence that one of possible reasons the US Attorney, Colm F Connolly is refusing to investigate and prosecute the case may be due to the fact that he was a partner at the firm of Morris Nichols and Bain was his client.

                Morris Nichols (MNAT) represented both Bain and eToys when eToys sold the assets to Bain/KB in 2001 for discounts in the tens of millions.  The participating parties in the schemes have also received more than $14 million in fee’s. (that we know of)

                Combine that with the fact that Bain was owned or controlled by the Presidential hopeful, Mitt Romney, plus $300 million in unexplained preferentials and you have an abundance of motive.  Now Colm F Connolly is being considered for a Federal District Court Judge position vacated by Kent A Jordan who already participated in all four of the Delaware District Court appeals concerning eToys.

     Undisclosed conflict of interest are against the Law. 

                If one just considers, for one moment that acts of cronyism by justices, court Clerks and Dept of Justice authorities are happening. Which seeks to snow the general public while giving immunity to officers of the court. Then anyone has to really question why are those esteemed, publicly trusted, authoritative parties permitting willful circumvention of the Law? Why is the Government we vote into office permitting acts of lawlessness that has facilitated fraud upon the court in a premeditated fashion? What is the motivation of the Court and Dept of Justice to permit criminal acts to continue without prosecution? At the same time why is the Dept of Justice and the Courts allowing the crooks to keep the spoils?

                In case the reader may desire a chance to grasp the diverse legal issues; and understand the criminal acts at hand. We break it down into simple semantics.

                The bankruptcy law only allows a bankruptcy judge authority over civil actions. Conflict of interest Federal Rules, Code and regulations exist to make sure attorneys keep their hands out of the cookie jar. Courts and lawyers decide where the bankrupt entities monies shall be dispersed.

                 If they (the attorneys) are connected to any party in the case, then it is a conflict of interest and a possibility of preferential treatment.  Therefore Congress has mandated disclosure of all relationships, to keep everything above board.

                 Being that the Court and lawyers are, in essence, self-policing, any discovered “conflict of interest” that was not disclosed Congress and the U.S. Supreme Court mandates that such requires disqualification and disgorgement. (the return of monies that have been gained improperly and throwing the fox’s out of the hen house.)

                Congress also mandates that such is a criminal act and must be referred to the Dept of Justice for prosecution.  The policing party to assure that process is the United States Trustee. The US Trustee is permitted no latitude in deciding whether or not to prosecute. 

                The law mandates, under 28 U.S.C § 586(a)(3)(F), that a US Trustee must Notify and Refer non disclosure of conflict of interest acts by court approved persons to the US Attorney’s office.  Both the US Trustee and a Judge are ordered by the statutory mandate of 18 U.S.C. § 3057(a) to notify the US Attorney’s office of any bad faith acts that they have witnessed being done by lawyers. This mandate is so restrictive that the Dept of Justice website states if a Trustee desires not to prosecute (because the act was not intentional), then the Trustee is still required to report the crimes to the US Attorney’s office and the Trustee may then submit a Memo of Declination to prosecute.  Even then the US Attorney has to do an independent investigation and if such investigation takes more than 1 hour, a case number must be assigned. No case number, no case!

                 Yet speciously, despite the proof and confessions of multiple acts of Perjury. Perjury that has perpetrated “fraud on the court” resulting in more than $300 million dollars in fraudulently obtained assets, remains unpunished and continuous.

    Dept of Justice and the Courts have detailed knowledge of the law of disqualification

                The Dept of Justice and the Courts know the law. A judge or US Attorney can not become such straight out of law school.  They have extensive experience in such matters being well versed in their fiduciary responsibilities and are salaried well above the American average, usually around $120,000 or more per year.

                Yet, it seems in this eToys or Delaware bankruptcy cases that the DOJ and the Courts recognizes that the public is basically lacking in such detailed knowledge. Therefore the DOJ, with the blessing of the Courts are encourage the perpetrators, with their high political connections,  to believe they get away with the crime. Everyone who is charged to halt the crimes are being willfully blind with recklessly disregard of the facts, as the Dept of Justice & Judges have the additional luxury of invulnerability.

                   The Dept of Justice United States Trustee takes an Oath of Office and is charged, under 28 U.S.C. § 586, with the fiduciary duty as both the “policing” agent of professional employment issues in bankruptcy; while the US Trustee is also the “watchdog” of public equity bankruptcies, per the authority of the Janet Reno Reform Act of 1994.

                It is this fiduciary failure of the Dept of Justice, under the façade of the  color of law” (perversion of legal statutory mandates & obligations) by the pretense of acting as if one is performing one’s duties, which is permitting the corruption of the justice system.

                 The wholesale slaughter of the good order of society has been effected, with an “in your face” mockery of justice by destruction of the judicial process through statements by the Courts, that a person must have the courts permission, to make a 911 call to the Court about grand scale larceny. Such implies the perpetrators, who are officers (and friends) of the court are “above the Law”!

                They control so much power, influence, money and political connections and even utilize our own attorney’s to deliver threats (by giving them higher paying cases) that the Courts, the perpetrators and the Dept of Justice personnel, all the way from Washington D.C. have entered the 3rd Circuit appeals as appellee’s defending the right to throw our proofs of the Perjury and Fraud out of the record.(3rd Cir 06-4308 & 07-2360)

     

    The Federal Courts cronyism persistently abuse parties who point out malfeasance.

     

                While it is true we are just a few “pro se” parties of very little significance, the fact remains it is the American system of justice that is being corrupted. All the proofs of the crimes are within Court docket records, there is no hyperbole or conjecture here.  The lies the parties told yesterday contradict the lies they are telling today. It is the internet that has now provided access to court docket records. Through Congressional Acts that seek to provide the public with the ability to make sure that things no longer go on behind closed doors.

                 The cronyism that has gone on for an extended period of time is so arrogant, they simply assert the fact that they will ignore the public records and retaliate in every manner their power permits against anyone who would dare use the internet to ferret out the Truth. Dov Avni, a stock holder in Stage who owned only $4500 in stock was ordered by the Court to pay $380,000.00 and the US Marshall’s were sent after him half a dozen times. It is all right there in the Court records.

     

    Pro se party in Stage Stores points out hidden $75 million asset

     

                One of the items Dov Avni brought to our attention was the fact that the F.D.I.C had granted Stage Stores a banking charter for the credit cards of Stage.  The original worth of that bank was $75 million.  It was never declared in Stage Stores bankruptcy and was sold for $150 million to the World Bank. This is also a huge crime.

                They, the judges who are willfully blind, the US Trustee’s who act in reckless disregard of the facts, are protecting their career associates who are doing syndicated, criminal acts; by stating they are above the law and the American public does not have standing or permission to address and stop the malfeasance. It is our hope, that the internet keeps this story alive as they have threatened us with our demise for our failure to “back off”.

     Only 3 out of the abundant Perjury acts documented by the US Trustee in eToys 

      The Asst U S Trustee (AUST) testified in the Feb 15, 2005 Disgorge Motion (eToys docket item 2195) whereupon the AUST stated the following items

    1.                  The AUST testified about having detailed discussions with the parties and cautioning them to refrain from violations of § 327(a). Specifically against the replacement of key personnel of the eToys (Debtor) with any new officers that are connected to the retained [court approved] attorneys in eToys.  Disgorge motion ¶ 19 and ¶ 35.

    2.                  As stated in parts 1 thru 9 in the Disgorge Motion the US Trustee affirmed that Traub Bonacquist & Fox (TBF) had filed multiple Rule 2014 affidavits reaffirming [falsely] that there were no conflicts of interest. (TBF was court approved Creditors counsel)

    3.                  Parts 10 to 19 the AUST stated that TBF was vastly experienced in matters of disclosure, being well versed in the Code requirements while TBF did not claim ignorance of the requirements with the AUST detailing the Dept of Justice in depth knowledge of the legal requirements of disclosing.

    4.                  In ¶ 17 the Trustee confirms that TBF had breached its duty to disclose.

    5.                  Also it part 17 it states that TBF compounded its failure by providing multiple affirmative misrepresentation [Perjury] that falsely stated TBF remained a “disinterested person”.

    6.                  A serious additional element proving the legal prosecutorial requisite of “scienter” (knowledge of doing intentional wrong) is the fact, which the AUSA acknowledge in ¶ 18,  is TBF confessed that it considered amending their Rule 2014 affidavit when the issues became known in anther case of In re Bonus Sales. Whereby TBF decide to continuously remain silent on the issue which had been hidden for a long time. (this is a Big confession)

    7.                  In part 19 the Disgorge motion states that Barry Gold’s hiring was no accident, specifically remarking upon the fact that Barry Gold was placed within the Debtor directly at the behest of TBF.

    8.                  Part 21 of the motion states that TBF seriously affected the judicial process, while the disgorge motion also stated

    9.                  Within part 27 the US Trustee states “A court may ordinarily disqualify a professional, deny compensation in whole or in part, or even order disgorgement —“ this remark is disingenuous as explained bellow.

    10.              Of special note is the fact that both the US Trustee and the Court offered up the controlling precedent of Law that the 3rd Circuit and US Supreme Ct states as the controlling issue, the case of In re Hazel Atlas Glass, which denotes the fact that Fraud upon the Court is a continuous offense until sufficiently remedied! “any Court decision that was acquired through fraud on the court is in essence no decision at all becoming void “ab initio”.”

                Several items that are amazing within the AUST disgorge motion is the fact that Mr. Perch concludes that Fraud upon the Court had occurred (¶ 35) and if the court were to disgorge anything less (than $1.6 million) it would simply be viewed “as a cost of doing business” lacking in sufficient deterrent value. ( ¶ 39 “conclusion”).

     

    Dept of Justice coverup of Fraud as DOJ attorney circumvents the Law

     

                Then, in an appalling and specious manner, less than 10 days later, the Dept of Justice attorney for the new Region 3 Trustee offers a Stipulation to Settle that provides the following illegitimate language while the Dept of Justice offers TBF implied settlement with immunity;

     

    WHEREAS the United States Trustee shall not seek to compel TBF to make any additional disclosures

      

                The Mark Kenney Stipulation to Settle does not state any legal basis for doing an act that of circumventing the Code; an endeavor that even a Federal Justice is prohibited from effecting. The 3rd Circuit cites repeatedly the matter of  In re Middleton Arms, L.P., 934 F.2d 723, 724 (6th Cir. 1991) where the Sixth Circuit found that the prohibition against disinterestedness was “unambiguous” and held that “[section] 327 prevents individual bankruptcy courts from having to make determinations as to the best interest of the debtors. (Where there is an actual conflict of interest, however, disqualification is mandatory. See  In re Marvel Entertainment Group, 140 F.3d at 476.) (emphasis added.). United States Trustee v. Price Waterhouse, 19 F.3d 138 (3rd Cir. 1994) where the Third Circuit referred to the adoption of the Sixth Circuits well established standard that “bankruptcy courts cannot use equitable[any] principles to disregard unambiguous statutory language.” Id, at 142

     

    Chief Justice states eToys case is extra ordinary due to fraud on the Court

     

                The Chief Justice in the eToys Bankruptcy, Mary F Walrath, (MFW) stated on page 14&15 of her own OPINION that Fed.R.Civ.P. 60(b)(6) did apply reflecting that “extra-ordinary circumstances” did exist. Citing In re Benjamin’s Arnolds, Inc., No. 4-90-6127, 1997 WL 86463. at *10 (Bankr. D. Minn. Feb 28, 1997).

                MFW also continued to remark that this Opinion “constitutes the finding of facts and conclusions of Law–” whereupon the OPINION concludes, against all established principals and logic, with brazen disregard for unambiguous statutory language, that Mr. GOLD was “not” required to apply by § 327(a).

    Cementing a distortion of justice by concluding with the demoralizing remark that it was not necessary for the Court to submit the issue to the U.S. Attorney office. In direct disregard of the Federal Judicial Canon’s of Conduct and in direct legal violation of 18 U.S.C. § 3057(a) which specifically states any judge knowing of a violation by a judge or lawyer under their purview, who is engaged in acts contrary to the law, must notify the US Attorney.

     

    Laser and shareholder speak with Dept of Justice Director about fraud

     

    Laser Haas and Alber had contacted the U S Attorney office in Delaware and had detailed discussions, providing extensive proof to Ellen Sights and Debra within the US Attorney’s office of Delaware.

    The erroneous conclusions contravenes the absolute correct statement the chief justice affirmed in the OPINION when she remarked:

                The failure of an attorney employed by the estate to disclose a disqualifying conflict of interest, whether intentional or not, constitutes sufficient ‘extraordinary circumstances’ to justify relief under Rule 60(b) (6). To hold otherwise would only serve to penalize the [Plaintiff] for delay that was beyond his control and to reward conflicted attorneys for failing to disclose  

    So one must conclude that the Judge is either unable to read her own writing or two different people (personalities) proffered the remarks.

    As the conflicting attorneys are being reward and HAAS has been expunged with fraud and perjury utilizations in denying court approved contracts, fee’s and expenses of more than $3 million for blowing the whistle.

    It appears almost readily apparent that there must be a type of alcohol within the Delaware Federal Court realm which encourages double-mindedness and acts by venerated authoritative figures that are acting contrary to the Law and Oath’s they are sworn to uphold!

    Just as significant is the fact that the US Trustee and court have ignored the Law, the “well established” within the 3rd Circuit and the US Supreme Ct. per many cases such as In re Middleton Arms, L.P., 934 F.2d 723, 724 (6th Cir. 1991) which long established the mandate where “courts cannot use § 105 [sua sponte] powers to disregard disinterestedness criterion”. (emphasis added). !  In re: First Jersey Securities the 3rd Cir. stated ‘where there is an actual conflict of interest, however, disqualification is mandatory’. (citing In re Marvel Entertainment Group, 140 F.3d at 476.) “Section 105(a) cannot be used to circumvent the clear directive of section 327(a)”. Id. At 725

     

    The US Trustee has sought leniency in 3 different ways within the Disgorge motion.

    a.                                           The AUST falsely stated in the first footnote that “Gold, as an employee of the debtors rather than a professional employed under 11 U.S.C. §§ 327(a) was not required to file a Rule 2014 affidavit.”

    b.                                          The refusal to seek disqualification is clearly erroneous, as is stated in the Middleton Arms etc. cases , disqualification is Mandatory!

    c.                                           This is the Biggie, the item that is of serious interest now with the newly discovered evidence of Colm F Connolly’s direct connection as a Dept of Justice Attorney who gained such employment while being an attorney at Morris Nichols Arsht & Tunnel (MNAT) for there is no mention, whatsoever, of disgorging MNAT. WoW!!!!!!

     

                As it is clearly demonstrated above, a “wind down coordinator” [financial advisor] is a Professional as defined by the Law and the US Trustee’s hand book and guidelines (please see  In re: Middleton Arms, Ltd. Partnership, 934 F.2d 723 (6ht Cir. 1991). Financial Advisor/workout consultant [wind-down coordinator] is a professional subject to 327(a) especially with any degree of autonomy In re: Riker industries, Inc., 122 B.R. 964, 973 (Bankr N.D. Ohio 1991), “bankruptcy courts determine the definition of a professional person due to his autonomy and authority over bankruptcy related matters”.)

                The US Trustee’s Disgorge Motion even testifies on the “financial advisor” issue by citing an on point reflection of a similar case and situation. Part 16 of the Disgorge endeavor verbatim

                “Regardless of whether such connections affected its disinterestedness, TBF was obligated to disclose its connections with Gold as soon as the debtors employed Gold. See Mateer of CF Holding Corp., 164 B.R. 799, 806- 07 (Bankr. D. Conn. 1994) (debtor’s financial advisor denied over $795,000 in fees and expenses for failure to timely disclose —-)”

      

    You can also see such detail in the cases of  In re: Stahl v Bartley Lindsay 137 B.R. 305, 309 (D. Minn. 1991) “Courts have concluded that financial advisors must be retained under 11 USC § 327(a). In re Martin 817 F 2d 175 180 (1st Cir1987) –addressing both the “unclean hands” doctrine and listing the 12 factors to consider in application of who must apply and disclose by 327(a). 

    The statements by the Court and US Trustee are very disingenuous in seeking not to disqualify, while ignoring other statutory mandates concerning Barry Gold failures to apply per § 327(a) which is cause for disqualification

     

    As the fraud is multiple years, multiple parties and multiple states it is RICO

     

    The staunch efforts of judicial and DOJ “nolle prosequi” (failure to prosecute) grossly violates the law and in effect administrates cronyism into full blown complicity that results from retaliatory acts of fraud against Haas and the eToys shareholders,

    Such is accomplished by the reckless disregard of the facts and willful blindness of Dept of Justice officials concerning large scale RICO activities. Persistently repeated by Dept of Justice and other Federal authorities nefariously; with belligerent endeavors to strike, expunge and dismiss Haas or Alber in the 3rd Circuit appeals dissipatedly.

    Now, even the full might and authority of the Washington D C Dept of Justice highest officials have signed their names, (in an endeavor of imprimatur) by flagrantly using the clout of the highest office of the US Government Dept of Justice to influence matters contradictory to their Oath of office and the Law.

     

    Dept of Justice website publishes the Law for everyone to see

     

    As can be seen on the Dept of justice website. The statement that no disqualification is required or that Barry Gold need not apply is extremely untruthful; being completely divergent to the very instructions that any UST is given within their own handbook and guidelines ( see http://www.usdoj.gov/ust/r15/Forms/EOUST_Ch7-11_Fee_App_Guidelines.PDF ) as seen on the Dept. of Justice US Trustee website, where you find The US Trustee Manual states the following on-point discussion of this issue;

     11 U.S.C. § 101(14)(A)-(D)mandates a literal approach to the disinterested person requirement and sets forth in detail a series of characteristics that disqualify a person.”

    While continuing it remarks upon the financial advisor [wind-down coordinator] issue

     If a professional has the characteristic then disqualification is automatic.” And “Since the language of the statute is clear, it must be applied as written” citing In re: Middleton Arms, Ltd. Partnership, 934 F.2d 723 (6ht Cir. 1991). Financial Advisor/workout consultant is a professional subject to 327(a) especially with any degree of autonomy In re: Riker industries, Inc., 122 B.R. 964, 973 (Bankr N.D. Ohio 1991),  Stahl v. Bartley Lindsay co. 137 B.R. 305, 309 (D. Minn 1991); In re: Marion Carefree Ltd. Partnership 171 B.R. 584, 588 (Bankr. N.D. Ohio 1994); In re: First Jersey Securities 180 F.3d 504, 509 (3rd Cir. 1999).

    There are also articles and briefs supplied by the Dept of Justice 
    General Counsel to Congressional Committee’s demonstrating advanced
     knowledge of such by the very same Roberta DeAngelis who seeks as the
     US DoJ General Counsel to defy in the eToys appeals.  In the report to 
    Congress as Region 3 Trustee in 2004, 
    just prior to the Emergency Motions of HAAS and Robert Alber, the Region 3 
    Trustee stated to the Committee on the Judiciary of the 
    United States House of Representatives (“Trustee Report”)
     (“EXHIBIT 10”) whereupon Trustee Roberta DeAngelis remarked 
    Professionals may be compensated only after application, notice to parties, 
    and approval by the bankruptcy court”(page 3 Trustee Report). 
    More significantly the Trustee Report remarks on page 2 that; 
      
    Full and complete compliance requires that the professional report
     all connections, not just those connections that, in the judgment of 
    the professional, may be relevant.  
     It is the court’s task to determine whether the connections are 
    disqualifying.  In its administration of Chapter 11 cases, the 
    United States Trustee endeavors to assure that the self-reporting 
    required of professionals is provided and that disqualifying 
    connections are brought to the attention of the court.
     
     The Dept of Justice Law and Guidelines says one thing 
    while they do another
      
    For the proof of willful, premeditated circumvention
     of the Law is in the Record
      

    All this contradictory decision making demonstrating, at the barest of minimums, that the Dept of Justice is acting “double minded” is the reality of how the US Dept of Justice and the Court knows the key fact that Barry Gold is a “wind down coordinator” for the only place that such is mentioned by the perpetrating parties is within the Barry Gold response to the allegations. Specifically the Barry Gold Hiring Letter that was drafted by TBF, MNAT, Barry Gold, David Gatto (VP/CFO of eToys) and others, which contains the following deliberate, willful ability to circumvent the Court and the Code, which is most certainly a crime; after the UST forewarned the parties against such endeavors, by the deceptive option to encourage or permit Barry Gold not to comply with the Code; worded egregiously, in the following manner:

     As of the Commencement Date, your position with the Company shall be as Wind Down Coordinator and you shall retain such position until (i) the approval of your employment as an Officer of the Company by order of the U.S. Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) —“ 

    The HIRING LETTER’s opt out clause from §327(a); stated a reward for not seeking approval-

     “—and you have waived the condition in clause (i), then you shall be appointed as President and Chief Executive Officer of the Company and your employment with the Company will be for an initial term ending May 20, 2002.” As anyone can see Barry Gold is rewarded [bribed] by his waiving, at his own volition, the requirement of applying to the Court, for if you remember that this letter remained hidden until the conflict issues were “ferreted” out, then it is simply plausible that Barry Gold required a “get out of jail free card” to avoid committing perjury and everyone involved said “ O K” we will draft you a hiring letter with a sneaky little phrase allowing you plausible deniability. 

     

    Dept of Justice and SEC are informed of Laser Haas anxiety

     If you look at the Dept of Justice’s large scale fraud endeavors against the public you will find reports by the former Director Lawrence Friedman stating in 2004 that over 10,000 cases of fraud was addressed that resulted in $60 million in fraud corrections.  http://www.usdoj.gov/ust/eo/public_affairs/press/docs/silver_screen_final_10-28-04.htm.such remarks were similarly made in 2003  which can be viewed here http://www.usdoj.gov/ust/eo/public_affairs/testimony/docs/testimony.pdf )Mr Friedman resigned right after the March 1, 2005 hearings and Mark Kenney’s efforts to ask the court to strike and expunge Haas and Alber  (please see the press release at http://www.usdoj.gov/ust/eo/public_affairs/press/docs/friedman_resignation_4-27-05.htm )  Mr. Friedman had emailed Laser Haas directly and told him the issues would be addressed by his staff on the very same day that Mark Kenney had offered the illegitimate “get out of jail free card” to TBF.

    From: Lawrence.A.Friedman@usdoj.gov

    Date: 02/25/05 14:49:58To: ‘laserhaas@msn.com’Cc: Kelly.B.Stapleton@usdoj.govSubject: RE: Item sent to the record today  

    Mr.. Haas:

     

    You most assuredly have our attention and my personal commitment that we will act in every case where action is required and we are aware of it.  Please understand however, that like any prosecutor, we must exercise appropriate discretion in carrying out our responsibilities which while sometimes in a particular case may seem unjust, it is done with perspective to ALL matters we handle.  I sympathize with your frustration and again assure you that my staff is extremely competent to handle this matter and will exercise appropriate judgment.

     

    Lawrence A. Friedman, Director

    Executive Office for US Trustees

    United States Department of Justice

    Washington, DC

     

               

                Even though Director Friedman had taken preemptive action in replacing the Region 3 Trustee, Roberta DeAngelis  which can be seen at the following website ( http://www.usdoj.gov/ust/eo/public_affairs/press/docs/stapleton_release2_12-04.htm

    ) and had followed up with the Disgorge efforts against Traub, it is readily apparent that someone else was running the show and we believe this is why Lawrence Friedman resigned. For the fact remains the declaration he made about his competent staff has proved to be, at a minimum, one readily apparent fallacy.  While I did do my best to provide him the leeway he requested as is seen in my emails to Director Friedman

     From: laserhaas@msn.com [mailto:laserhaas@msn.com]

    Sent: Friday, February 25, 2005 5:13 PM

    To: Friedman, Lawrence A

    Subject: RE: Item sent to the record today

     Dear Mr. Friedman:

     

    I deeply apologize for upsetting you and tying up resources with my emails and faxes. My intention was and remains the endeavor to get your offices attention and confirmation that someone is paying jurisprudent oversight to what is occurring concerning the flagrant matters at hand. Having received your request I most apologetically will comply and accept your email acknowledgement to also confirm you are on top of the matter. Which until reception of your email I felt my pursuit of justice was falling into a void. Sincerely 

    Laser Steven Haas

    Further conversations were not so cordial.

     From: Lawrence.A.Friedman@usdoj.gov

    Date: 02/25/05 14:01:06To: ‘BHaasS@aol.com’Cc: Kelly.B.Stapleton@usdoj.gov;  Frank.J.Perch@usdoj.gov;  Mark.Kenney@usdoj.gov;  ‘kell.b.stapleton@usdoj.gov’;  ‘rsussman@kronishlieb.com’;  ‘mminuti@saul.com’;  ‘jgarrity@shearman.com’;  ‘gwerkheiser@mnat.com’;  ‘condo28@mail.com’;  ‘laserhaas@msn.com’;  ‘Grobinson@sec.gov’;  ‘ssherillbeard@sec.gov’;  ‘bbrook@bbhhlaw.com’Subject: RE: Item sent to the record today 

    Dear Mr. Hass: 

    Please stop sending me copies of all these emails.  My staff is extremely capable of passing on to me any items that would require my attention.  If any party in each of the 1,650,000 cases filed last year served me with copies of every communication we would not have time to take any position in regards to your case.

     

    Lawrence A. Friedman

    Director, Executive Office of US Trustees

    United States Department of Justice

    Washington, DC

     

    —–Original Message—–

    From: BHaasS@aol.com [mailto:BHaasS@aol.com]

    Sent: Friday, February 25, 2005 4:49 PM

    To: bhaass@aol.com

    Cc: Stapleton, Kelly B.; kell.b.stapleton@usdoj.gov; Perch, Frank J.;

    Kenney, Mark; Friedman, Lawrence A; rsussman@kronishlieb.com;

    mminuti@saul.com; jgarrity@shearman.com; gwerkheiser@mnat.com;

    condo28@mail.com; laserhaas@msn.com; Grobinson@sec.gov;

    ssherillbeard@sec.gov; bbrook@bbhhlaw.com

    Subject: Item sent to the record today

     

     

    To All parities of interest: This is to make everyone aware that Collateral Logistics, Inc. (“CLI”) — Steve Haas as President does state adamantly the following: 

    CLI Objects to the request by the US Trustee to amend more softly the original US Trustee request of disqualification and disgorgement of $1.5 million in fee’s — whereas CLI feels that said original request was not, in many ways, severe enough correction of the matter at hand.

     

    Secondly the request to move forward the smaller settlement with broad indemnification language is strenuously objected to along with the request to hear the settlement matter on March 1, 2005. It is much more appropriate that those that did deceive admit the facts at hand and their intent and throw yourselves on the mercy of the Court and those harmed by the scheming. This rampant endeavor to gain a monopoly of the Delaware Court system through power, influence and corruption has to cease. SincerelySteve HaasPresident and CEO

    Collateral Logistics, Inc.

    After emails Lawrence Friedman and Frank Perch resign and DeAngelis is promoted. 

    Surely one should find it odd that the replacing of a Region 3 Trustee is marked with a press release, while the person who was replaced, removed or side ways appointed has no mention, whatsoever, as being promoted to the General Counsel position in Washington D C.  ( http://www.usdoj.gov/ust/eo/public_affairs/press/index.htm ).

    The fact remains that the US Attorney Colm F Connolly and Mark Kenney, along with the US Trustee (formerly Roberta DeAngelis and Frank Perch)(now Kelly B Stapleton and Andrew Vara ) along with the General Counsel of the Dept of Justice EOUST ( the former Region 3 Trustee Roberta DeAngelis) have all refused to disqualify, disgorge properly and prosecute Traub Bonacquist & Fox, Morris Nichols Arsht & Tunnel, Barry Gold, Bain/KB Toys, Liquidity Solutions, Xroads LLC, Wells Fargo/Foothill Capital, David Gatto, David Haddad (who had hidden $2 million in cash overseas) Richard Cartoon and Fredrick Rosner (Traub’s local counsel who had moved to 4 different firms carrying eToys case  with him).

     

    US Attorney for Delaware was a partner of the Law firm the DOJ refuses to prosecute

    Colm F. Connolly

    Colm F. Connolly has served as the United States Attorney for the District of Delaware since September 4, 2001. Mr. Connolly was an Assistant United States Attorney from 1992 to 1999 and a partner with the Morris, Nichols, Arsht & Tunnel law firm in Wilmington, Delaware 2from 1999 to 2001. After graduating from the Duke University School of Law in 1991, Mr. Connolly clerked for Judge Walter K. Stapleton of the U.S. Court of Appeals for the Third Circuit. Mr. Connolly holds a bachelor’s degree from the University of Notre Dame and a master’s degree from the London School of Economics. There are $300 million in unanswered issues, while denying access to books n records.  With the newly discovered evidence that Colm F Connolly was with Morris Nichols prior to becoming a US Attorney.  The whole Delaware Bankruptcy system has gone A W O L in a syndicated White Collar Criminal manner that would make Al Capone and the G-dfather desire to rise from the grave…. 

     

    The Facts are indisputable, No Prosecution has occurred of deliberate Fraud

     So the issue is very simple, the AUST has stated that he [fore]warned the parties against replacing key personnel of the Debtor with anyone connected to the [court] retained professionals in the case.   You also have documentation by the US Trustee’s office that not only was that warning disregarded, the parties engaged in drafting a “clandestine” Hiring Letter that remained hidden for 3 years until the “non-disclosure” of “conflict of interest” issues was discovered.  Where the offending parties admitted they filed multiple, false Rule 2014 Affidavits. (which is Perjury) as is now documented in another, less connected issue concerning Mitt Romney’s campaign participant the 23-count indictment Wednesday, Alan B. Fabian, who is also accussed of Perjury in a bankruptcy matter (and all he did was deny a connection on a $3 million dollar issue). Which can be seen at the following web link http://www.google.com/search?hl=en&q=mitt+romney+campaign+fraud+perjury&btnG=Search

    After you have the issue of being warned, with admitted acts of multiple, false affidavits, you also have the fact that TBF confessed that he paid Barry Gold  four (4) separate payments of $30,000 each before and after eToys filed bankruptcy, Which was halted once TBF placed Barry Gold within the debtor as “wind down coordinator” who then became President and CEO after choosing to deliberately not inform the court by an illegal , contractual measure that was drafted by every “officer of the Court” you can think of within the case, (which is a conspiracy to defraud).

    Now if that is not enough for you, add to the items above that we have since discovered 100 other felony violations, including the fact that eToys sold the assets to Bain/KB Toys whom TBF, MNAT, David Gatto and Barry Gold have all been connected to.  This is the most serious of violations, it simply Can Not be done, they, in essence, sold the assets to themselves, under the “guise” of being the highest of trusted parties with affidavit’s swearing up and down that they had No such Connections.

    jabramczyk@mnat.com   Jon E Abramczyk partner MNAT tel 302 351-9211

    Jon regularly represents major Fortune 500 corporations and their directors in Delaware, including Morgan Stanley & Co., Inc., Viacom, Inc., CBS Corporation, Hallmark Cards and QUALCOMM, IncHe recently successfully represented Bain Capital, Vornado and KKR in the Court of Chancery litigation challenging their acquisition of Toys-R-Us.

    As MNAT has failed to disclose and being that the conspiracy to defraud was soooo successful, the parties decided to have it all.  The confirmed PLAN of eToys that decides what the creditors and eToys shareholders get was drafted by the parties under the guise that they were all “arms length” “good faith” negotiating parties.  While the US Trustee and Court state that no proof has been provided that any Perjury has occurred (despite the already known confessions to the contrary) you have another smoking gun.  For Traub supplied Barry Gold as the confirmed Plan administrator, the sole party in control of the entire $50 million that remained.  The Plan also states that Barry Gold can not have any relationship to anyone and that it must be done “arms length”  Which is documented by Barry Gold with false remarks {Perjury] as “plan administrator” in the Plan Declaration Barry Gold signs “under penalty of perjury”, (eToys D.I. 1312 page 24, ¶63). Under part C. Plan Proposed in Good Faith 1129(a)(3)  Part C. ¶44 Barry Gold testifies  

    The Plan represents extensive arms’ length negotiations among the Debtors, the Creditors’ Committee, and other significant parties in interest, as well as their advisors.  The Debtors proposed the Plan in good faith —

     

                As if this is not enough, Barry Gold is permitted to pay any items under $1 million without the Court’s approval and is further compounded by the issue that the AUST has already acknowledged that TBF received $1.7 million after the Plan was confirmed.

                You also have other issues such as Wells Fargo loaned eToys $40 million in November 2000 and then took out $120 million before eToys filed on March 7, 2001.  A preferential that is 100% rescindable under the bankruptcy Law of equitable subordination as the loan originated by Foothill Capital and was returned to, with all the profits to Wells Fargo.  Having never been under review by independent counsel is a crime that is documented in the matter of In re Bucyrus 94-20786 (E D Wisc) Gellene  as counsel of the firm of Milbank & Tweed.  Gellene went to jail for his perjury when someone he was connected to loan the debtor $35 million ( a former Goldman Sachs party) and the loan was never reviewed.  Milbank & Tweed was disgorged their entire $1.9 million and lost a lawsuit of $30 million.  ( please see the web stories at the following http://findarticles.com/p/articles/mi_qa3975/is_200601/ai_n17187297  and http://lawprofessors.typepad.com/whitecollarcrime_blog/legal_ethics/index.html the Oesterle Law Professors blog is a wealth of information on such, just as his friend Peter Henning who addresses White Collar crimes )

                When Barry Gold and TBF worked for the Stage Stores Bankruptcy (S Texas 00-35078) (which is also owned by Bain, SanKaty, Mitt Romney, Michael Glazer (CEO of KB) TBF never disclosed that Liquidity Solutions is “co-debtor” with Stage Stores ( a fact that is very Well hidden!)

                Liquidity Solutions and companies affiliated with Liquidity began buying up many of the claims (and plan votes) in eToys. There is nothing against the law about buying up creditors claims, the Courts actually encourage the business. However, you must Disclose such, for any related party by such conflict can give preferential treatment to such “undisclosed” connections at direct, materially adverse harm to everyone else. Which is also complicated by the other factors, the Court, speciously permitted the unusual act of approving destruction of books n records. Which tends to hide the proof of who is owed what.

                Even more morose, is the aforementioned issue that Barry Gold is the sole authority of  who gets paid what settlements under $1 million without the requisite of the Courts approval.  Every single time Laser or the eToys shareholders have asked for review of books n records as well as all accounting, that is permitted under Bankruptcy Rule 2004 (it is even permitted to use such review as a “fishing” expedition to search for malfeasance).  The Court, the TEAM of TBF, MNAT and Barry Gold and the US Trustee who is mandated to enforce such, have all simply ignored the requests.  Will not even hold a hearing about such. 

                Now complete the circle that the US Trustee, as is testified within the Disgorge Motion is the “watchdog” as per 11 U.S.C. § 307 and the Janet Reno Reform Act of 1994. (see disgorge motion ¶ 2). Along with the fact that the US Attorney has refused to prosecute or hire any independent special attorney while at the same time the Dept of Justice personnel who were trying to handle the matter all resigned.  Whereupon the removed Region 3 Trustee, Roberta DeAngelis was promoted to the position of General Counsel in Washington D .C , after the person who demoted her resigned, which is further compounded by the fact that DeAngelis is now entering the appeals as an appellee defending the egregious actions and erroneous decisions. At the same time asking the Court’s to strike, expunge and dismiss Laser and Alber, which in effect steals the monies that they are righteously entitled to and are being defrauded of by “unclean hands” who have gained “unjust enrichment” by the manifest injustice of pretense and “color of law” intentional acts of circumvention of the Court by Perjury, who by deliberate acts of subterfuge are still hording the spoils of their crimes with glee.

                To finally cap it all off, DeAngelis states to the court in her brief that if the Court should decide the appellants have merit, then the Court should return the case to the Del Dist Court instead of the bankruptcy court.  Where it just so happens that the US Attorney who has refused to prosecute his former associates and parties he “represented” (specifically Bain, Goldman Sachs etc) is now being considered to be promoted to the vacant Del Dist Ct position.

                We only need one crime and act of cronyism to warrant Congressional investigation and press attention.

                Yet here we have the grandest of schemes, by the grandest of players, who are all esteemed members of the Court and Dept of Justice, who are acting contrary to Law and in a treasonous manner to their oath of office and fiduciary duty.

                We seriously doubt that so many judicial and Dept of Justice parties meant to get entangled in one of the largest racketeering events you will see.  What we really believed happened is each separate arm went to protect slight acts that collaboratively make for an organized syndicate indictment.

                If there are any among you that doubt parties can be corrupted by acts of cronyism that is connected to $300 million and powerful political promotion possibilities, by all means, please raise your hand!

     ——————————————————-

    DELAWARE JUDGE ACCUSSES Dept of Justice of FRAUD on the COURT

    Delaware Bankruptcy Court  Judge Fitzgerald

    This case is sooooo Great on so many levels.

    1- It states it is Against the Law not to inform the Court there are ongoing investigations

         as such facilitates fraud on the Court.

    2- As the Judges are not notified in the eToys case(s) then there is not case into the 100 felony issues we reported.

    3- The Dept of Justice will now be forced to review issues on Delaware cases.

    Things are heating up guys. (I believe that the only reason this case came to light is the person died, had such not occurred, the lid would still be on the case, we do not know what caused his death)

        I may be broke and homeless, but no longer is it hopeless.

    ———————————————
    It was reported today that a Delaware Bankruptcy Judge accussed the Dept of Justice of withholding information that caused millions in over billings.

    A judge on Thursday accused the U.S. Justice Department of contributing to fraud by failing to notify her of a yearlong investigation into a consulting firm suspected of making millions by padding fees in bankruptcy cases.

    Judge Judith Fitzgerald of the U.S. Bankruptcy Court in Pittsburgh said at a court hearing that she and other bankruptcy judges in several states are “very upset” they weren’t informed of the Justice Department’s probe into the billing practices of L. Tersigni Consulting.

    “Literally millions of dollars went out of debtors’ estates that should not have gone out,” Fitzgerald said. She said “there was a fraud on this court, and the Department of Justice participated.”

    A spokesman for the U.S. Attorney in Newark, N.J. who launched the investigation denied there was a ban on communication with the bankruptcy court about the investigation.

    “At no time did the U.S. Attorney’s Office instruct anyone to withhold information from the bankruptcy court. That simply did not occur,” Michael Drewniak said in an e-mailed statement.

    Bankruptcy judges in Delaware, Pittsburgh, New Jersey and New York are being asked to appoint examiners to assess the damage.

    “Everyone was told to stand down, including the U.S. Trustee,” said the attorney, Robert K. Malone.

    Malone said Rapp was instructed to stay on the job at the Tersigni firm and supply documents to the U.S. Attorney and FBI, which he did.

    Malone said there was evidence that Tersigni in some cases underbilled bankrupt companies.

    Judge Fitzgerald on Thursday said the Justice Department was bound by ethical rules that require attorneys who suspect fraud in court proceedings to call it to the attention of the judge.

    “What on earth was going on in the Department of Justice?” she asked.

    Stapleton, the U.S. Trustee, told the judge that Department of Justice rules bar attorneys involved in a criminal investigation from feeding information to attorneys who work on the civil side, such as the U.S. Trustee. She said she could not say whether the criminal investigation was still under way or whether the matter had been submitted to a grand jury.

    Lawyers representing the Tersigni interests could not be reached for comment.

     

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